HK Stock Market Move | CHONGQING M&E (02722) surges by over 27% again, strategic restructuring of CHONGQING M&E Group accelerates, Chongqing Cummins is the leading domestic engine supplier.

CHONGQING M&E (02722) rose by over 27% again, with a cumulative increase of over 80% within the month. At the time of publication, it rose by 20.39%, reaching 1.24 Hong Kong dollars, with a turnover of 140 million Hong Kong dollars. On the news front, on the afternoon of February 10th, Zeng Jinghua, Party Secretary and Director of the Chongqing State-owned Assets Supervision and Administration Commission, visited CHONGQING M&E Group to investigate reform and development work. He emphasized the need to accelerate the completion of the group's strategic restructuring and the professional integration of its subsidiary enterprises, striving to create landmark achievements in the deepening reform of state-owned assets and enterprises. He also stressed the need to vigorously implement reform tasks such as streamlining the organization, reducing losses, and revitalizing assets, and to speed up the professional integration of strategic restructuring to ensure that the reform tasks are basically completed by the end of March. Public information shows that the main shareholder of the Hong Kong-listed company CHONGQING M&E is CHONGQING M&E Holdings (Group) Company, with the actual controller being the Chongqing State-owned Assets Supervision and Administration Commission. Guotai Junan released a research report stating that the continued high prosperity of domestic AIDC and data center construction benefits CHONGQING M&E, with high demand for high-end diesel generators. The bank pointed out that with the outbreak of demand for data centers, overseas manufacturers such as Cummins have seen a continuous increase in revenue and profit margins in their power system businesses. It is worth noting that the cooperation between CHONGQING M&E and Cummins began in 1981. As the cooperation deepened, in October 1995, with each party investing 50%, they jointly established Chongqing Cummins Engine Co., Ltd. Currently, Chongqing Cummins has become a leading domestic manufacturer of large horsepower engines.