CHUANGXIN IND Gains HKD33 Target on Green Energy Savings

Edgen Stock

·Mar 25 2026, 02:50

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Key Takeaways

BNP Paribas initiated coverage on aluminum producer CHUANGXIN IND (02788.HK) with a positive outlook, citing significant future cost reductions from its renewable energy initiatives. The bank's analysis points to the company's green power projects in Inner Mongolia as a key driver for improved profitability, alongside long-term growth prospects from its expansion into Saudi Arabia.

BNP Paribas launched coverage with an Outperform rating and a HKD33 price target for CHUANGXIN IND.
The company's new green energy project is projected to slash aluminum production costs by approximately RMB1,000 per ton.
The wind and solar facilities in Inner Mongolia are scheduled to begin operations in two phases by the end of 2026.

BNP Paribas Sets HKD33 Target in New Coverage

BNP Paribas has initiated coverage on aluminum producer CHUANGXIN IND (02788.HK), assigning it an "Outperform" rating with a price target of HKD33. The bank's positive assessment hinges on the company's strategic investments in green energy, which are expected to substantially lower operational expenses and enhance margins. The new rating and optimistic forecast signal confidence in the company's growth trajectory and cost-management strategy.

Green Energy to Cut Aluminum Costs by RMB1,000 Per Ton

CHUANGXIN IND's core value proposition, according to the BNP Paribas report, is its new wind and solar power project in Inner Mongolia. Because electricity accounts for approximately 37% of the company's total aluminum production costs, this self-sufficient power generation is a significant operational advantage. The bank estimates that once fully operational, the green power facilities will save the company around RMB1,000 per ton of aluminum produced.

The project is slated to come online in two distinct phases by the end of 2026, providing a clear timeline for the anticipated cost benefits. In addition to the domestic energy initiative, BNP Paribas highlighted a project in Saudi Arabia as a key pillar for driving the company's long-term international growth.