HK Stock Market Move | CHINAHONGQIAO (01378) rose more than 4%. The resurgence of geopolitical conflicts may further extend the overseas supply gap, contributing to the increase in aluminum prices and boosting the company's performance.

CHINAHONGQIAO (01378) has risen over 4%, reaching a rise of 4.25% and priced at HKD 24.52, with a transaction volume of HKD 610 million as of the time of writing. In terms of news, due to the escalation of military conflict between the U.S. and Iran, shipping through the Strait of Hormuz has been hindered, intensifying expectations of supply tightening. As of September 8, the LME March aluminum price has climbed to USD 3,341 per ton. Zhongtai believes that following the resurgence of conflict between the U.S. and Iran, not only has the uncertainty surrounding the navigation prospects of the Strait increased, but also the uncertainty surrounding 9% of global supply from the Middle East's electrolytic aluminum supply has risen. For the global electrolytic aluminum industry, the widening gap in overseas supply may prolong the period of tightness in the sectors supply and demand dynamics in the medium term. Recently, CHINAHONGQIAO disclosed its performance for the first half of 2026. Guotou International Securities pointed out that CHINAHONGQIAO's rapid performance growth is mainly attributable to a significant year-on-year increase in aluminum prices in the first half of the year and the company's excellent management level and integrated operations. In the first half of the year, the company achieved a gross profit of RMB 27.53 billion, a year-on-year increase of 32.3%. Alumina sales reached 6.917 million tons, representing a year-on-year increase of 8.6%; sales of deep-processed aluminum alloy products reached 444,000 tons, an increase of 23.2% year-on-year. The firm believes that in the first half of the year, due to the impact of the U.S.-Iran war leading to maritime blockades, increased energy costs caused a reduction in production capacity in major global electrolytic aluminum-producing regions, compounded by a significant increase in demand for energy storage and power networks, which has driven up electrolytic aluminum prices and further widened the price gap between domestic and overseas markets.