HK Stock Market Move | LK Tech (00558) surged nearly 15% in morning trading as multiple companies increased their investment in die-casting business. Institutions predict that there will be a rebound in demand for die-casting machines.

, LK TECH(00558) rose nearly 15% in the morning session and was up 11.9% as of the time of writing, trading at 2.82 Hong Kong dollars with a turnover of 29.89 million Hong Kong dollars. On the news front, according to a message from Tesla's official Weibo account, Tesla has launched an upgraded version of the Model Y in China with a starting price of 263,500 yuan. In addition, several companies are increasing their investment in die-casting business. Ideal Car has launched an integrated aluminum die-casting floor; Suzhou Victory Precision Manufacture plans to raise funds to expand its vehicle-mounted magnesium alloy project; Guangdong Fucheng has made a bulk purchase of a 2500T large intelligent die-casting unit. Guotai Junan International previously pointed out that LK TECH's main customers Tesla, Huawei, and Xiaopeng's recent developments in autonomous driving technology may increase demand for their vehicles, thus increasing demand for die-casting machines. Given that the risk has now decreased and the favorable technological environment, we expect the rebound in demand for die-casting machines to continue into the second half of the 2025 fiscal year and possibly into the 2026 fiscal year.