China Hongqiao (01378) climbed more than 4% during morning trading, with shares last up 3.93% at HK$23.28, recording a turnover of HK$302 million. The company is set to hold a board meeting today to consider and approve the release of its 2026 interim results.

The firm previously forecast a roughly 39% year-on-year increase in net profit for the first half of the year, primarily driven by higher selling prices of aluminum alloy products compared to the same period in 2025. Deutsche Bank's recent research note highlighted that after two decades of rapid expansion, China Hongqiao has now entered a mature operational phase. Over the next five years, the company is expected to return cash equivalent to more than 60% of its current market value through dividends and share buybacks.

Huatai Securities stated that despite the prevailing pessimistic market sentiment, it maintains its view that the company's high-dividend attributes are significantly undervalued by the market. Meanwhile, domestic electrolytic aluminum capacity ceilings remain in place, and high-cost overseas capacity supports aluminum prices. Sustained elevated prices are likely to continue underpinning the company's strong earnings and dividend performance.