Understanding the Market | CHINAHONGQIAO rose over 5% in early trading as Hongchuang Holdings plans to acquire all shares of Hongtuo Industry, which will help enhance the company's H-share valuation level

Zhitong
2025.01.09 03:40
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CHINAHONGQIAO rose over 5% in early trading, and as of the time of writing, it has increased by 4.93%, trading at HKD 11.5 with a transaction volume of HKD 225 million. In terms of news, on December 23, 2024, CHINAHONGQIAO and its subsidiary Hongchuang Holdings jointly announced that Hongchuang Holdings is planning to acquire 100% equity of Hongtuo Industrial through the issuance of shares. The relevant information disclosed by Hongchuang Holdings shows that Hongtuo Industrial currently owns all aluminum alloy product, alumina product, and some aluminum alloy processing product production lines located in mainland China under CHINAHONGQIAO Group Limited and its subsidiaries. It is worth noting that this acquisition can also be seen as an internal asset shuffle within the "Weiqiao system," as both companies are under the control of the Zhang Bo family, who are the actual controllers of the aluminum giant Weiqiao Chuangye Group. Guolian Securities pointed out that this transaction is beneficial for enhancing CHINAHONGQIAO's asset securitization level and market influence, achieving asset integration to improve management efficiency and performance, and promoting the company's long-term development; the company will have both A-share and H-share financing platforms, and its financial condition is expected to improve; after the completion of this transaction, it will help enhance the company's H-share valuation level. In addition, considering the significant rise in alumina prices, the company's profit elasticity is expected to continue to be released

According to Zhitong Finance APP, CHINAHONGQIAO (01378) rose more than 5% in early trading, and as of the time of writing, it is up 4.93%, trading at HKD 11.5, with a transaction volume of HKD 225 million.

In terms of news, on December 23, 2024, CHINAHONGQIAO and its subsidiary Hongchuang Holdings jointly announced that Hongchuang Holdings is planning to acquire 100% equity of Hongtuo Industrial through the issuance of shares. Relevant information disclosed by Hongchuang Holdings shows that Hongtuo Industrial currently owns all aluminum alloy product, alumina product, and some aluminum alloy processing product production lines located in mainland China under China Hongqiao Group Co., Ltd. and its subsidiaries. It is worth noting that this acquisition can also be seen as an internal asset transfer within the "Weiqiao system," as both companies are under the control of Zhang Bo's family, the actual controller of the aluminum giant Weiqiao Chuangye Group.

Guolian Securities pointed out that this transaction is beneficial for enhancing CHINAHONGQIAO's asset securitization level and market influence, achieving asset integration to improve management efficiency and performance, and promoting the company's long-term development; the company will have both A and H financing platforms, and its financial condition is expected to improve; the completion of this transaction will help enhance the company's H-share valuation level. In addition, considering the significant rise in alumina prices, the company's profit elasticity is expected to continue to be released

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