Western Securities: High Prosperity + Integration + High Dividends China Hongqiao (01378.HK) has obvious alpha in both profitability and growth potential. First recommended "buy" rating.

According to the China Fortune Finance and Economics APP, West Securities has released a research report stating that the electrolytic aluminum industry has limited production capacity, high prosperity, and long-term scarcity. China Hongqiao (01378.HK) has stable profitability and reduced costs by integrating operations and using its own electricity supply. It is relocating to Yunnan to comply with industry development trends, and has clear alpha potential in terms of both profitability and growth. The institution predicts that China Hongqiao's net profit attributable to shareholders for the years 2025-2027 will be 22.33 billion, 24.15 billion, and 25.36 billion yuan, with earnings per share of 2.38, 2.57, and 2.70 yuan, and a price-to-book ratio of 1.0, 0.9, and 0.8 times. A 2025 P/B ratio of 1.35 times is given, with a target price of HK$17.44 per share, and a "buy" rating is assigned for the first time.