HK Stock Market Move | CHUANGXIN IND (02788) rises more than 8% and breaks through the top again. The company's stock price has risen by more than 30% this week, benefiting from the increasing prosperity of electrolytic aluminum.

CHUANGXIN IND (02788) rose more than 8%, reaching a high of 32 Hong Kong dollars to set a new record high, with a cumulative increase of over 30% since its listing on March 9. As of the time of publication, it rose by 8.01%, reaching 31.56 Hong Kong dollars, with a trading volume of 2.18 billion Hong Kong dollars. In terms of news, since the end of February, tensions in the Middle East have escalated suddenly, from the blockage of shipping in the Strait of Hormuz to Qatar and Bahrain's aluminum plants facing unforeseen obstacles. The global aluminum supply chain is facing a substantial threat. China Post Securities believes that the current electrolytic aluminum prices are only affected in the short term by the shutdown of the Qatalum aluminum plant and the Bahrain aluminum plant. If the conflicts continue, with natural gas power generation costs rising and raw material shortages, aluminum prices are expected to reach 30,000 RMB/ton. If the conflicts are conditionally eased, aluminum stocks still have dividend and other safety margins, and the resumption of rate cuts is still a positive factor. Zheshang points out that benefits from the rising aluminum prices due to the improved industry prosperity in the electrolytic aluminum industry, the decrease in alumina prices leading to cost reductions, and the decline in electricity costs due to new energy installations have significantly increased the company's profits. Meanwhile, the planned increase in Saudi electrolytic aluminum production capacity is expected to drive an increase in the company's electrolytic aluminum production volume, with a possible further increase in output by 2027. In addition, the company has significant long-term growth potential. Companies with significant growth potential in the industry include Shandong Nanshan Aluminium/Hebei Huatong Wires & Cables Group, which have clear valuation premiums, with an average PE of 28X in 2026.