Bank of America: Under AI power shortage, Chinese aluminum companies become "hidden champions". Target price for China Hongqiao (01378.HK) raised to HK$38.

According to the Zhtng financial APP, a research report released by Bank of America stated that, against the backdrop of rapid global development of AI leading to a sharp increase in electricity demand, the Chinese aluminum industry sector has strong investment value due to significant electricity cost advantages, multiple growth drivers on the demand side, and tightening supply conditions. Bank of America has raised profit forecasts for China Hongqiao (01378.HK) for the years 2026-2030 by 5-14%, with the target price raised from 35 Hong Kong dollars to 38 Hong Kong dollars, maintaining a "buy" rating. The supporting logic includes a 6%-7% dividend yield, the commissioning of the Xmngd project by the end of 2025, share buyback support, and valuation advantages of a 9x price-to-earnings ratio in 2026.