Citigroup: Raises CHINAHONGQIAO (01378) target price to 48 Hong Kong dollars and continues to recommend it as a top pick.

Citigroup recently released a research report, updating its model for CHINAHONGQIAO (01378) by including 2025 financial performance, latest price forecasts, and management guidance. The bank has raised the target price for CHINAHONGQIAO from HK$36 to HK$48, maintaining a "buy" rating and continuing to list it as a top pick. Citigroup stated that the aluminum industry remains its most favored sector, as supply disruptions caused by the situation in the Middle East may lead to a longer-than-expected recovery in aluminum capacity, even if a ceasefire agreement is reached. Over the next 6 to 12 months, Citigroup expects aluminum supply to remain tight, which will support aluminum prices and profit margins. As of the close of April 8th, Citigroup forecasts a dividend yield of 6.4% for CHINAHONGQIAO in the 2026 fiscal year, which is attractive. In addition, the company has attractive dividend distribution and stock repurchase plans in place, focusing on shareholder returns. Taking into account the rise in aluminum prices and decrease in operating expenses, Citigroup has raised its profit forecasts for CHINAHONGQIAO for the 2026/2027 fiscal years by 14%/11% to 31.8/33.6 billion RMB. Additionally, a profit forecast for the 2028 fiscal year has been added, at 35 billion RMB.