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r/hkstocks
Hongqiao maintains a steady footing throughout the 2 main segments
Investor summaryBullish
Hongqiao's aluminum segment profit rose 20%, offsetting alumina margin drops; author sees the material stock as undervalued.
Bull points
- Aluminum alloy segment unit gross profit increased by 20% due to higher ASP and lower production costs.
- The author believes the aluminum sector has long-term growth potential and the stock is currently undervalued.
Bear points
- Alumina segment unit gross profits dropped by about half due to a 15% decline in average selling price.
1378.HK财报季
Post body
- Aluminum Alloy Products, which make up 65% of revenue, performed very well. Sales volumes held steady at 5.82 million tonnes. The average selling price went up by 3.8%, and unit production costs fell by 1.5%. As a result, unit gross profit increased by 20%.
- The Alumina Segment, which accounts for 24% of revenue, had to compare against a strong performance in 2024. Volumes rose by 23% to 13.4 million tonnes. However, a 15% drop in average selling price cut the segment’s unit gross profits by about half.
The longer i have been holding Hongqiao, the more i realize this aluminum sector could be further ever. I think the material stock still be looked around. What stock or sector are you most bullish on right now?
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