HK Stock Market Move | CHINAHONGQIAO (01378) rose more than 5% in the morning, and aluminum prices are expected to rebound to a maximum of $3,500. The company's dividend value is highlighted.

CHINAHONGQIAO (01378) rose over 5% in the morning session, and as of the time of writing, it was up 4.5% at HK$20.9, with a turnover of HK$2.31 billion. On the news front, the latest report from Citigroup predicts that aluminum prices will bottom out in the next month and then gradually rise to between $3,300 and $3,500 per ton from September to December. This is mainly due to the dovish stance of the Federal Reserve, declining real interest rates, improving demand outlook, and continued decrease in inventory levels as measured by days of consumption. The bank also pointed out that concerns in the market about a rapid return of supply from the Middle East may be overstated. Prior to this, Haitong International released a report stating that CHINAHONGQIAO has a dividend payout ratio of up to 65% over 25 years, corresponding to a dividend yield of 4.78%. By the end of 25 years, the company had repurchased a total of 306 million shares, with a cumulative amount of HK$55.82 billion. The total amount of "cash dividends + repurchases" for the year accounted for 88% of the net profit attributable to shareholders, demonstrating the company's generous shareholder return and highlighting the value of dividends. With the future upward shift in aluminum prices and a slowdown in capital expenditure, the company's long-term high dividend yield property is expected to increase its valuation level.