China Hongqiao Group Limited (1378.HK) stock analysis

In our weekly check, China Hongqiao Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3.

About China Hongqiao Group Limited

China Hongqiao Group Limited is a Basic Materials company (Aluminum) based in China, listed on HKSE as 1378.HK.

What our checks show for 1378.HK

Red flags

• Operating profit covers interest only 1.5 times: a weak year could make the payments hard.
• The dividend takes 327% of profit: little cushion if profit falls.
• The stock has fallen as much as 77% from a peak. Would you have held through that?

Warning signs

• The gross margin fell by 1.5 points, to 25.1%: costs are rising faster than prices.
• Analysts expect only about 2.4% a year of growth in revenue.
• The price swings a lot: 48.7% annual volatility. Expect large ups and downs.

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 1.72x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 11.4% a year over the next years.
• Earnings per share grew 36.3% a year over the last 3 years.
• Net profit grew 37.5% a year over the last 3 years.
• Free cash flow is 17.1% of revenue: cash for dividends, buybacks or growth.

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Questions

What grade does China Hongqiao Group Limited (1378.HK) have?

In our weekly check, China Hongqiao Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1378.HK stock?

This week's biggest flags for China Hongqiao Group Limited: Weak interest cover, Dividend stretched, Deep past fall. In total 6 of 25 checks show a warning or a red flag.

What does China Hongqiao Group Limited do?

China Hongqiao Group Limited is a Basic Materials company (Aluminum) based in China, listed on HKSE as 1378.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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