Production | The frontline of the startup
Author | Duan Nannan
Edit | Feng YuBeauty editor | Xing Jing
Review | Songwen
The largest private electrolytic company in China, China Hongqiao has left investors impression of high growth and high dividends.Because of this, the capital market has also given Chinas Hongqiao extremely positive feedback.Since August 2012, China Hongqiaos stock price has increased by nearly 9 times.
However, Chinas "aluminum king" also has its own troubles. It is subject to power limit. There is still uncertainty in the relocation of Chinas Hongqiao to Yunnan.In addition, in the context of continuous and high dividends, the companys cash flow is not strong compared to huge debt.When the production capacity reaches the ceiling, can Chinas "aluminum king" find the second growth curve?
1. The stock price has increased by more than 9 times, and the actual controller family has more than 72 billion
When it comes to China Hongqiao, we have to mention that Weiqiao Group (Companys actual controller holding affiliated company) and its founder Zhang Shiping.In 1946, Zhang Shiping was born in Weiqiao Village, Zouping County, Shandong.
Because of the poor family, Zhang Shiping entered a small oil -cotton factory to carry cotton. This is more than ten years.In 1981, 35 -year -old Zhang Shiping ushered in the turning point of his career, and he was appointed as the director of the fifth cotton factory in Zouping County.
When they took over, the factory lost serious losses. With a series of large -scale reforms in Zhang Shiping, the fifth oil cotton factory successfully turned to profit.Later, due to the sluggish industry, the factory cotton could not be sold.
In order to solve the problem of insufficient cotton output of the company, Zhang Shiping began to extend downstream, and soon established a towel factory and spinning factory.On this basis, Zhang Shiping established Weiqiao Venture Group.
Due to the great electricity consumption of textile factories, in order to ensure the power supply produced, Weiqiao Textile began to build its own power plant.With Zhang Shipings efforts, Weiqiao Group built the companys first hot power plant in 1999.
It is reported that the power generation cost of Weiqiao Group is lower than that of the State Grid. Due to too much power generation, Weiqiao Groups textile business cannot consume power.
Knowing that the cost of 45%of electrolytic aluminum is derived from the cost of electricity, Zhang Shiping also set his sights on the electrolytic aluminum industry.At the beginning of the 21st century, Zhang Shiping established Weiqiao Aluminum, the predecessor of China Hongqiao.
Shortly after its establishment, the first 250,000 -ton electrolytic aluminum production line in Hongqiao China was put into production.Since then, China Hongqiao has continuously acquired electrolytic aluminum production capacity from Weiqiao Group, and in 2010, the companys total production capacity increased to about 920,000 tons.
In 2011, China Hongqiao successfully completed the listing in the Hong Kong Stock Exchange. With the power of capital, China Hongqiao entered a period of high-speed development.In 2012, China Hongqiao Group announced that it invested $ 1 billion in an investment with mineral deities and ship transport vendors to establish alumina production companies in Indonesia. The design capacity of 2 million tons was designed in two phases, which were put into production in 2016/2021.
In 2014, China Hongqiao and several other companies established the Win -Kai Mining Company in Guinea. It is reported that the mining area has been proven and controls the aluminum mine resources of 600 million tonsEssence
In 2017, the aluminum industry started supply -side reform. As the largest electrolytic aluminum private enterprise in China, China Hongqiao obtained 6.46 million tons of electrolytic aluminum compliance indicators.The upper limit of capacity.As of the end of 2023, the companys electrolytic aluminum production capacity has reached 6.46 million tons of the prescribed limit.
Due to the low cost of power generation, and the company has established the "aluminum mines → alumina → electrolytic aluminum" integrated layout, Chinas Hongqiao gross profit margin has been among the best in the aluminum industry.
Data show that in the first half of 2024, China Hongqiao gross profit margin was as high as 24.19%. As a comparison, the largest electrolytic aluminum company in China in China was only 17.26%during the same period.
Due to the continuous expansion of production capacity and high gross profit margin, Chinas Hongqiao has increased significantly compared with the revenue and net profit when it was first launched.
In the first half of 2012, the companys revenue and net profit were 12.6 billion yuan and 2.840 billion yuan, respectively. In the first half of 2024, Chinas Hongqiao revenue and net profit increased to 73.59 billion yuan, respectively., 5.5 billion yuan.
As the performance has continued to increase, China Hongqiaos stock price has also risen all the way. Since August 2012, the companys stock price has risen by more than 9 times, and its market value has exceeded HK $ 120 billion.
By this, in 2023, the Zhang Bo family of China Hongqiao actual controller Son) Ascended the Rician of Shandong Province with a net worth of 42.79 billion yuan.By 2024, the Zhang Bo familys net worth rose to 72 billion yuan, ranking 217th in the Hurun Global Rich List.
2. Shandongs richest man in Shandong received nearly 28 billion yuan dividends, but the companys short -term debt exceeded 34 billion yuan
In addition to the continuous rise in the stock price to the continuous value -added of the Zhang Bo family wealth, the continued large dividends of China Hongqiao also benefited the Zhang Bo family.
Wind data show that since 2006, China ’s Hongqiao has achieved a total net profit of 117.16 billion yuan, with a cumulative dividend amount of 43.482 billion yuan, and the dividend rate is 38.92%.
Especially in recent years, the companys dividend rate has gradually improved.From 2021 to the first half of 2024, the companys dividend rates were 50.37%, 50.36%, 47.66%, and 55.96%, respectively.
As of June 30, 2024, the Zhang Bo family holds 64.36%of China Hongqiaos equity through family trust, which also meansMost dividends in China Hongqiao fell into the hands of the Zhang Bo family.
Based on the equity of the Zhang Bo family holding equity, the 43.482 billion yuan of Chinese Hongqiao dividends since 2006, which has nearly 28 billion yuan in cash fell into the Zhang Bo family.
Through dividends, the Zhang Bo family earns a lot of money.Due to the continuous large -scale dividend, although China Hongqiao continues to be profitable, its debt pressure is not small.
As of June 30, 2024, China Hongqiao cash and cash equivalents were 37.5 billion yuan.The guarantee notes that need to be repaid during the year are 2.126 billion yuan.
This also means that the companys existing cash and cash equivalents are only enough to repay debts in the next year.In addition, the company also has 12.51 billion yuan in bonds and 9.61 billion yuan of bank loans that need to be repaid a year later.With the qualifications and operating conditions of China Hongqiao, it is not difficult to repay the debt as scheduled.
On March 26, 2024, China Hongqiao issued a 364 -day period of USD bonds, with a scale of 300 million US dollars. The final price was 7.75 % (annual interest rate)EssenceIn the first half of 2024, the company paid 1.493 billion yuan in interest expenses.
In addition, Moodys and other letter of critics believe that China Hongqiao debt is mainly based on short -term debt, and to a certain extent, it is under pressure to expire.Look at it.
But from the perspective of Chinese Hongqiao still insisted on the large dividend in the middle of 2024, the company is obviously not worried about the due debt redemption.From a financial perspective, the companys large profit should give priority to repay a large amount of debt, and then dividends.
China Hongqiao is more inclined to dividend, it is difficult to define the right or wrong.However, it is undeniable that the large dividends of China Hongqiao did make the actual controllers Zhang Bo family earn a lot.
3. The capacity of production capacity is obstructive, and the car is to make the car the second growth point."> For China Hongqiao, because the production capacity of electrolytic aluminum has reached the upper limit, how to make the company grow in the future is the issue that the companys management needs to focus on thinking.
From the perspective of Chinas Hongqiao layout, the companys promotion of enterprise growth and transformation is mainly reflected in controlling costs and finding the second growth point.In terms of control costs, China Hongqiao chose to relocate the electrolytic aluminum production capacity to Yunnan.
Unlike other provinces, Yunnan is sufficient, and more than 80%of its electricity consumption comes from hydropower.Compared with thermal power generation, hydropower prices are low.Related data shows that the cost of hydropower per kWh is between 0.07-0.1 yuan, and the cost of thermal power generation is relatively high, and the cost of each degree of electricity is between 0.28-0.32 yuan.
According to the relevant plan, China Hongqiao plans to transfer 3.96 million tons/annual capacity to Yunnan, accounting for 61.3%of the total production capacity.At present, the main project of the 2.03 million tons/annual electrolytic aluminum production capacity of Yunnan has been completed.
However, it is unknown whether the overall relocation can be successfully carried out.From 2021 to 2023, Yunnan has been in the dry period for three consecutive years. Power supply has been tight, and local electrolytic aluminum has been affected by reducing production during the dry period.Institutional data shows that in the past three years, Yunnans power -limited impact on the electrolytic aluminum output of the local area is about 500,000 tons/year. In 2023, Yunnan electrolytic aluminum production capacity was 5.65 million tons.
According to the plan, at the end of the "Fourteenth Five -Year Plan", the electrolytic aluminum production capacity of the province will reach about 10 million tons.With the existing production capacity, Yunnans dry period cannot be completely digested. If China Hongqiao 3.96 million tons/annual production can be migrated, there is still a lot of questions about whether the existing hydropower system in Yunnan can digest.Earlier, due to the electricity limit of Yunnan, China ’s Hongqiao production capacity relocation plan was also postponed. From this point of view, China’ s Hongqiao production capacity relocation road was difficult.
In terms of actively looking for new growth points, the Chinese Hongqiao under the leadership of Zhang Bo set its sights on the automotive field.
In 2019, Hongqiao invested 10 billion yuan to combine the Chinese Academy of Sciences University and CITIC Trust to set up the Weiqiao National Higher Technology Research Institute to form a research center such as aviation astronal and intelligent technology.
At present, China Hongqiao has launched the three series of 6 cast aluminum alloy materials for "casting forging".In the first half of 2024, China Hongqiaos aluminum alloy processing products achieved revenue of 7.58 billion yuan, an increase of 34.3%year -on -year, which is the companys fastest growing business.
In order to develop business coordination, Weiqiao Group, China Hongqiao related party, also invested in a number of automotive companies, and China Hongqiao also sold products to relevant companies.
However, the sales volume of automobile companies invested by Weiqiao Group is in general. Take Beijing Automobile Manufacturing (including Polar Stone and Beijing) as an example.To 10,000.
This also means that it is obviously unrealistic that the continuous growth of aluminum alloy processing products by relying on related companies to promote aluminum alloy processing products is obviously unrealistic.To this end, China Hongqiao is also actively expanding external customers.However, competition in this field is very fierce, and whether the exterior expansion of Chinas Hongqiao can be followed.
For China Hongqiao, due to the continuous and large dividend, the company has certain debt pressure in the short term.Great uncertainty.
Investors have given great feedback on the companys outstanding performance in the past ten years.If you can find the second growth point, China Hongqiao will inevitably go further.
*Note: The picture in the text is from the photo network, based on the VRF protocol.
