STOCKS | Huatong Cable Hits Limit-Down After Prior Session Limit-Up, Company Responds

Huatong Cable’s share price hit the daily limit-down, after hitting the daily limit-up in the previous trading session. According to Jin10, market discussion followed a July 6 report claiming the company’s Phase II electrolytic aluminum project in Angola was being accelerated. Huatong Cable said the wording about the project being “accelerated” was not the company’s phrasing, and that the project is progressing normally according to plan. The market also focused on the company’s larger inventory balance in 2025, with copper and aluminum raw materials tying up significant working capital. The company said purchases of copper and aluminum require advance funding, while downstream collections have a cycle. It added that this is a common operating characteristic across the cable industry and is not unique to the company. Huatong Cable said copper and aluminum costs account for about 90% of total costs, and that it passes raw-material price increases on to downstream customers, though price-adjustment cycles vary by region and customer. The company also said it has substantial overseas business, and costs may be affected by ocean freight rates or rising raw-material prices, as well as foreign-exchange fluctuations.