Guosheng Securities: The profitability of electrolytic aluminum is rapidly increasing, and the net profit in Q1 of 25 has significantly increased compared to the previous year, maintaining a "buy" rating on China Hongqiao (01378.HK).

According to the intelligence financial APP, Guosheng Securities released a research report stating that China Hongqiao (01378.HK) disclosed the first quarter financial results of its subsidiary Shandong Hongqiao in 2025. In the first quarter of 2025, Shandong Hongqiao achieved a revenue of 40.17 billion yuan, with a quarter-on-quarter growth of +16%/-4%; the net profit attributable to the parent company was 6.36 billion yuan, with a quarter-on-quarter growth of +46%/+40%. Guosheng Securities speculates that the increase in profit in the first quarter of 2025 is mainly due to the rapid growth in profits of electrolytic aluminum. It is expected that the company will achieve a net profit attributable to the parent company of 19.5/20.5/22.1 billion yuan from 2025 to 2027, corresponding to PEs of 6.7/6.4/5.9 times, and maintains a "buy" rating.