Understanding the Market | CHINAHONGQIAO rose over 5% in early trading, aluminum prices are expected to rebound to a maximum of $3,500, highlighting the company's dividend value

Zhitong
2026.07.03 02:21

CHINAHONGQIAO rose over 5% in early trading, and as of the time of writing, it has increased by 4.5%, trading at HKD 20.9 with a transaction volume of HKD 231 million. In terms of news, Citigroup's latest research report indicates that aluminum prices are expected to bottom out within the next month, and then gradually rise to the range of USD 3,300 to 3,500 per ton between September and December. This is mainly due to the Federal Reserve's increasingly dovish policy, declining real interest rates, improved demand outlook, and continuously decreasing inventory based on consumption days. The bank also pointed out that market concerns about the rapid return of Middle Eastern supply may be exaggerated. Cathay Securities previously released a research report stating that CHINAHONGQIAO's dividend rate for 2025 is as high as 65%, corresponding to a dividend yield of 4.78%. As of the end of 2025, the company has repurchased a total of 306 million shares within the year, with a cumulative repurchase amount reaching HKD 5.582 billion. The total amount of "cash dividends + repurchases" for the year accounts for 88% of the net profit attributable to shareholders, highlighting the company's generous shareholder returns and the prominence of dividend value. With the future upward shift in aluminum price centers and a slowdown in capital expenditures, the company's long-term high dividend attribute is expected to elevate its valuation level

According to the Zhitong Finance APP, CHINAHONGQIAO (01378) rose over 5% in early trading, and as of the time of writing, it is up 4.5%, priced at HKD 20.9, with a transaction volume of HKD 231 million.

In terms of news, Citigroup's latest research report indicates that aluminum prices are expected to bottom out within the next month, and then gradually rise to a range of USD 3,300 to 3,500 per ton between September and December. This is mainly due to the Federal Reserve's increasingly dovish policy, declining real interest rates, improving demand prospects, and continuously decreasing inventory based on consumption days. The report also pointed out that market concerns about the rapid return of Middle Eastern supply may be exaggerated.

Cathay Pacific Securities previously released a research report stating that CHINAHONGQIAO has a dividend rate of up to 65% over 25 years, corresponding to a dividend yield of 4.78%. As of the end of 2025, the company has repurchased a total of 306 million shares within the year, with a cumulative repurchase amount reaching HKD 5.582 billion. The total amount of "cash dividends + repurchases" for the year accounts for 88% of the net profit attributable to the parent company, highlighting the company's generous shareholder returns and the prominence of dividend value. With the future upward shift in aluminum price centers and a slowdown in capital expenditures, the company's long-term high dividend attributes are expected to elevate its valuation level

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