CICC: The large-scale repurchase and increase in holdings in 1H26 demonstrate confidence in long-term development, maintaining a "Outperform Industry" rating for CHINAHONGQIAO (01378).

CICC released a research report stating that it maintains a "outperform the industry" rating for CHINAHONGQIAO (01378), and the 1H26 results meet market expectations. The company announced its 1H26 performance, reporting an operating income of 87.506 billion yuan, a year-on-year increase of 7.98%; a pre-tax profit of 25.154 billion yuan, a year-on-year increase of 41.6%; and a net profit of 17.210 billion yuan, a year-on-year increase of 39.23%. In addition, the companys significant buybacks and stake increases in 1H26 demonstrate confidence in long-term development. CICC's main points are as follows: Aluminum prices rising sharply boost profits per ton of aluminum In terms of prices, the average price of electrolytic aluminum and alumina in 1H26 was 24,100 yuan/ton and 2,704 yuan/ton, respectively. In terms of sales volume, the sales volume of aluminum alloy products in 1H26 was 2.811 million tons; alumina sales amounted to 6.917 million tons, a year-on-year increase of 8.6%. In terms of profit, the unit gross profit of aluminum alloy products was 8,161 yuan/ton, a year-on-year increase of 81.1%. Asset structure further optimized, with significant buybacks and stake increases in 1H26 reflecting long-term development confidence The company's debt-to-asset ratio decreased to 40.5% in 1H26, down 1.7 ppt compared to the end of 2025; benefiting from a reduction in interest-bearing debt and a decline in financing rates, financial expenses fell by 13.6% year-on-year. The company repurchased a total of 159 million shares in 1H26, amounting to 5.286 billion Hong Kong dollars, and completed cancellations; in June, the controlling shareholder increased its stake by 41.5 million shares, amounting to 1.1 billion Hong Kong dollars. Building a vertically integrated green industrial chain in the aluminum industry In the upstream, the company continues to strengthen resource reserves through the joint venture with Winning Alliance to develop bauxite supply bases in Guinea, ensuring raw material supplies; it also extends to alumina smelting and participates in iron ore development, aligning with local industrial policy directions while reducing geopolitical risks. In the midstream, a green transformation strategy is being promoted: on one hand, the company is implementing the "moving north aluminum south" plan, relocating part of its production capacity from Shandong to water-rich Yunnan; on the other hand, it is exploring carbon reduction pathways through direct supply of green electricity and molten salt energy storage in Shandong, creating an innovative electric-heat-steam conversion model. In the downstream, the company continues to push for product structure optimization, increasing its efforts in the automotive lightweight business and building a green recycling industrial matrix.