Shares of China Hongqiao Group (1378.HK) rose 2.82% after its subsidiary, Shandong Hongqiao New Material, reported a 30.3% surge in first-quarter net profit, driven by robust performance in its core business.
The subsidiary's net profit reached RMB 82.69 billion ($11.4 billion) for the three months ended March 31, according to a company filing. The strong bottom-line growth came as revenue climbed 3.4% year-over-year to RMB 415.52 billion, signaling sustained demand.
The results from Shandong Hongqiao, a major contributor to the group's overall earnings, provided a significant boost to investor confidence. China Hongqiao's stock has been a strong performer, though it has also attracted significant short interest, with short-selling volume reaching $681.13 million, or 42.65% of the total turnover on the day of the announcement.
The strong earnings may help to counter some of the negative sentiment from short-sellers, providing a fresh data point for investors to re-evaluate the company's fundamentals. The performance of its subsidiary suggests that the aluminum producer is navigating the current economic environment effectively. Investors will be watching to see if this earnings momentum can be sustained in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
