HK Stock Market Move | CHINAHONGQIAO (01378) rose more than 5% after profit exceeded expectations; it is expected that the net profit for the first half of the year will increase by nearly 40% year-on-year. UBS pointed out that the dividend yield forecast is very attractive.

CHINAHONGQIAO (01378) rose more than 5% after the earnings report. As of the time of writing, it has risen by 4.44% to HKD 21.66, with a trading volume of HKD 525 million. On the news front, CHINAHONGQIAO announced that it expects a roughly 39% year-on-year increase in net profit for the first half of 2026, mainly due to the increase in selling prices of the group's aluminum alloy products compared to the same period in 2025. Detailed financial performance will be disclosed in the interim results announcement, expected to be released by the end of August 2026. In its latest research report, UBS pointed out that concerns about oversupply in the aluminum industry have been significantly exaggerated, and the current stock price has already fully reflected, and even over-reflected, this pessimistic expectation. The bank maintains a "buy" rating on CHINAHONGQIAO, with the core reason being the extremely attractive predicted dividend yield. According to UBS's forecasts, CHINAHONGQIAO's forecast dividend yields for 2026 and 2027 are as high as 10.7% and 11.5%, respectively. With a stable payout ratio of 60-65% and ongoing share buybacks, the company is providing shareholders with very generous cash returns.