HK Stock Market Move | CHUANGXIN IND (02788) surged over 6% in the last trading session, with the expected net profit for the first half of the year reaching up to 2.4 billion yuan. Institutions are optimistic about the aluminum profit per ton maintaining a high level.

CHUANGXIN IND (02788) surged over 6% in the final trading hours, up 6.5% as of the time of writing, priced at HKD 17.38, with a transaction volume of HKD 129 million. In news, CHUANGXIN IND plans to hold a board meeting on August 17 to approve its interim results. The company previously issued a profit warning, expecting a net profit of approximately RMB 2.2 billion to 2.4 billion for the first half of the year, representing a year-on-year increase of about 154.1% to 177.2%. This is mainly due to the rise in the sales prices of aluminum electrolysis products; an increase in the proportion of green electricity usage reducing production costs; and the companys active optimization of its financing structure. CICC released a research report stating that the US-Iran conflict is creating a supply-demand gap, supporting high aluminum profits. The bank noted that the market is mainly focused on the company's incremental projects in Saudi Arabia. We believe the company's comprehensive industrial chain, high resource self-sufficiency rate, and cost reduction through green electricity can lead to stronger performance stability and product competitiveness, while the opportunity for high dividend allocation is worth significant attention.