Citigroup releases reportskinnytigerandfattydragonAfter updating China Hongqiao's analytical model, its target price will be increased from 11skinnytigerandfattydragon.5 HKD increased to 13skinnytigerandfattydragonHK$.8, equivalent to a forecast P/E ratio of 6.9 times this year, rated as "Buy", this year and nextskinnytigerandfattydragonThe profit forecast for our company has been raised by 8% and 4% respectively, and remains unchanged in 2026, mainly reflecting the increase in assumptions about average selling prices and unit costs.
The bank's profit forecast for this year and next is 29% and 36% higher than the market consensus estimate respectively. It is estimated that the market will gradually increase its forecast in the next few months. The bank believes that the profit margin of mainland aluminum industry will remain high for some time, mainly due to strong demand, while supply is still tight. The potential upside is also driven by manufacturers replenishing inventories, and maintaining China Hongqiao as the first choice.
