Sound market position as the world's largest aluminum producer. Integrated business model that supports low cash costs. Geographic concentration in China's Shandong province. Single commodity exposure. Generally stable financial metrics backed by steady aluminum prices. Lower capital spending that should result in positive free operating cash flows. Sufficient cash on-hand and better working capital management support liquidity. The stable outlook on China Hongqiao Group Ltd. (Hongqiao) reflects our view that aluminum prices will remain stable in the next 12 months, supported by a benign demand outlook and disciplined supply induced by de-capacity and environmental protection measures. We expect Hongqiao to maintain its large operational scale and cost advantage in the aluminum industry. We forecast the company will improve its leverage
