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China Hongqiao Group (1378) Fair Value & Analysis

Basic Materials · HK · Market cap HK$196B

CH China Hongqiao Group 1378 · HK
PriceHK$22.70
Fair ValueHK$24.01
Upside+5.8%
Quality62/100
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Healthy Growth
Solidly profitable · 13.9% net margin
Low debt · generates free cash flow
7.39% dividend yield
Ranks above peers (11/14)
Moderate moat 57/100
Evidence: Medium Range HK$18.00 – HK$36.79 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated today

Fair value updated Aug 13, 2026, revised from HK$45.53 to HK$24.01 (−47.3%) since Aug 5, 2026. Share price −2.0% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (HK$18.00 to HK$36.79) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$38.07 HK$4.04 Fair Value HK$24.01 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$4.04 – HK$38.07 · fair‑value band HK$18.00 – HK$36.79 · the HK$22.70 price screens below the HK$24.01 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Hongqiao Group (1378) currently trades at HK$22.70, while our model-based Fair Value estimate is HK$24.01, implying the stock looks roughly 5.8% fairly valued today. The Quality Score stands at 62/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China Hongqiao Group generated revenue of HK$162B at a net margin of 13.9%. Revenue declined 1.5% year over year. It earns a return on equity of 18.6%. Net debt stands at HK$18.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$18.00 (bear case) to HK$36.79 (bull case); at HK$22.70, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 42% below its 52-week high and 37% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at 6%, 1378 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$40.11 HK$79.66 HK$141.69 80
Residual Income HK$15.25 HK$20.17 HK$68.16 76
Rev-Margin DCF HK$25.45 HK$42.77 HK$66.76 74
All 24 models by family
DCF Models
FCF DCF HK$41.12 HK$76.13 HK$159.44 38
Owner Earnings HK$27.70 HK$54.80 HK$106.39 31
5Y Revenue Exit HK$25.45 HK$43.14 HK$67.52 39
5Y EBITDA Exit HK$34.47 HK$63.02 HK$100.35 41
5Y P/E Exit HK$32.59 HK$58.89 HK$90.40 38
10Y Revenue Exit HK$29.54 HK$48.88 HK$79.79 36
10Y EBITDA Exit HK$36.34 HK$64.02 HK$109.15 37
10Y P/E Exit HK$35.06 HK$60.87 HK$100.25 35
Earnings-Based
Graham-Dodd HK$15.68 HK$89.89 HK$125.00 54
Lynch FV HK$25.32 HK$36.17 HK$47.02 50
PEG = 1.0 HK$25.32 HK$36.17 HK$47.02 46
EPV HK$26.50 HK$30.75 HK$34.46 59
Multiples
P/E Multiple HK$29.39 HK$39.19 HK$48.99 63
P/S Multiple HK$18.60 HK$24.80 HK$31.00 58
P/B Multiple HK$29.39 HK$39.19 HK$48.99 55
EV/EBIT HK$38.62 HK$51.15 HK$63.68 53
EV/EBITDA HK$33.26 HK$44.00 HK$54.74 54
EV/Revenue HK$18.39 HK$25.84 HK$33.28 43
Asset-Based
NCAV (Graham) HK$6.75 HK$9.05 HK$13.51 50
Growth DCF
Growth DCF HK$40.11 HK$79.66 HK$141.69 80
Rev-Margin DCF HK$25.45 HK$42.77 HK$66.76 74
Economic Profit
Residual Income HK$15.25 HK$20.17 HK$68.16 76
ROIC Compounder HK$31.49 HK$44.17 HK$61.72 72
Growth Earnings
Growth-Adj P/E HK$34.16 HK$48.81 HK$63.45 68

Widest divergence: DCF Models (HK$58.89) versus Asset-Based (HK$9.05). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$162B
Revenue growth (YoY) -1.5%
Net margin 13.9%
Return on equity 18.6%
Free cash flow HK$27.8B FY2025
P/E ratio 7.3 as of Jul 2, 2026
More key figures
Operating margin 21.9%
EPS (TTM) HK$1.31
Dividend yield 7.4%
EPS growth (YoY) -23.1%
Net debt HK$18.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 63 · Market factors (momentum, volatility) 33

Profitability 52
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 77
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China, India, Europe, Malaysia, North America, the rest of Southeast Asia, and internationally.

Full company description

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China, India, Europe, Malaysia, North America, the rest of Southeast Asia, and internationally. The company's products include molten aluminum alloy, aluminum alloy ingots, aluminum deep processing products, and alumina products; and aluminum fabrication products, aluminum alloy products, steam, and aluminum foils. It is also involved in the development and production of decorative foil, household foil, heat-sealed foil, candy foil, food foil, double zero foil, and other products. In addition, the company engages in research, development, mining, and sale of bauxite; financial leasing; and production and sale of electricity. China Hongqiao Group Limited was founded in 1994 and is headquartered in Zouping, the People's Republic of China. China Hongqiao Group Limited is a subsidiary of China Hongqiao Holdings Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Hongqiao Group reported revenue of HK$162B in FY2025 versus HK$114B in FY2021, a compound +9.1%/yr. Reported net income was HK$22.6B in FY2025, compounding +8.9%/yr from FY2021.

Growth Quality 99/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$162B
Latest YoY
+4.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.5%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.0%
Revenue +9.1%/yr
FY21 HK$114B
FY22 HK$132B
FY23 HK$134B
FY24 HK$156B
FY25 HK$162B
Net income +8.9%/yr
FY21 HK$16.1B
FY22 HK$8.7B
FY23 HK$11.5B
FY24 HK$22.4B
FY25 HK$22.6B
Character of growth · EPS growth decomposed (2014-2025) +10.4 % p.a.
Revenue per share +9.0 pp

of which total revenue +13.8 pp · buybacks/dilution −4.7 pp

EBIT margin −1.3 pp
Tax rate +0.4 pp
Residual (interest, one-offs) +2.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Hongqiao Group Fair Value". https://www.fairvalue-calculator.com/stock/1378

Peer Group

Aluminum · 82 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +6% · Above median
Return on equity (TTM) 19% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 7.4% · Top 25%
Debt / equity 0.34× · Higher than 75% of peers

Valuation Multiples vs Aluminum median · lower = cheaper

P/E (TTM) 7.3× · Cheaper than 75% of peers
P/B 1.48× · Cheaper than median
P/S (TTM) 1.21× · Pricier than median
P/FCF 0.9× · Cheaper than 75% of peers
EV/EBITDA 4.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 41 · sector 18
FUTURE 0 · sector 25
PAST 74 · sector 32
HEALTH 83 · sector 92
DIVIDEND 100 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aluminum stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is China Hongqiao Group (1378) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$24.01 versus a price of HK$22.70, about +6% (fairly valued).
What is the fair value of 1378?
Our model-based fair value for China Hongqiao Group is HK$24.01 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$22.70.
What is the quality score of 1378?
China Hongqiao Group has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Hongqiao Group (1378)?
China Hongqiao Group reported trailing-twelve-month revenue of about HK$162B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1378?
The net profit margin of China Hongqiao Group is about 13.9%, meaning it keeps roughly 13.9% of revenue as net income. Based on the latest reported figures.
Does China Hongqiao Group pay a dividend?
China Hongqiao Group currently shows a dividend yield of about 7.39% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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