China Hongqiao: Site visit: Wenshan Hongtai and Honghe bases in Yunnan

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China Hongqiao: Site visit: Wenshan Hongtai and Honghe bases in Yunnan

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China Hongqiao

Site visit: Wenshan Hongtai and Honghe

bases in Yunnan

Maintain Rating: BUY | PO: 45.00 HKD | Price: 20.64 HKD

Low-carbon, automation, expand high-value downstream 29 June 2026

We attended the site visit to China Hongqiao in Yunnan on June 25. Currently, Hongqiao Equity

has 2.28mnt of aluminum capacity in Yunnan, including 1.8mnt in Wenshan and 480kt in

Honghe. The site visit across Wenshan Hongtai and Honghe bases highlighted progress Miriam Chan, CFA >> Research Analyst

in decarbonization, automation, and downstream expansion. On the R&D front, Merrill Lynch (Hong Kong)

collaboration with Central South University is advancing inert anodes and low- +852miriam.chan@bofa.com3508 7478

temperature electrolyte systems, offering the potential to eliminate CO₂ emissions and Matty Zhao >>

enhance compatibility with renewable energy. Operationally, the anode workshop has Research Analyst

Merrill Lynch (Hong Kong)

achieved full automation with process innovations that improve efficiency and reduce +852 3508 4001

costs. Aluminum alloy and hot-rolling projects leverage advanced imported equipment to matty.zhao@bofa.com

achieve lower energy consumption, while shifting toward higher value-added products

such as battery materials to address margin pressure. At the Honghe base, aluminum

production is highly automated and stable. The Smart Cloud Center further underscores Stock Data

the company’s overall competitiveness in intelligent and sustainable production.

Price 20.64 HKD

Price Objective 45.00 HKDResilient operations & enhanced shareholder returns

For Honghe, the 100-kt capacity launched in May was fully commissioned in just 20 days Date Established 30-Apr-2026