HK Stock Market Move | CHONGQING M&E (02722) rose more than 7% after YINGXI. It is expected that the annual net profit will increase by about 40% to 45% year-on-year.

CHONGQING M&E's stock price surged by more than 7% after the announcement, reaching 1.18 Hong Kong dollars, with a trading volume of 16.4578 million Hong Kong dollars. In terms of news, CHONGQING M&E announced that the group expects the profit attributable to shareholders in 2024 to increase by about 40% to 45% compared to the same period in 2023. This is mainly due to the group's proactive market capture in the high-horsepower engine business, fully utilizing new production capacity, significantly increasing investment income; and the company's industrial pump and other main businesses strengthening market development, increasing market share, while strengthening internal management, reducing costs, improving efficiency, and further enhancing operational quality. Guotai Junan previously released a research report stating that the continuous high prosperity of domestic AIDC and data center construction has led to high demand for high-end diesel generators. The report pointed out that the explosive demand for data centers has led to a continuous increase in revenue and profit margins for overseas companies such as Cummins. It is worth noting that the cooperation between CHONGQING M&E and Cummins began in 1981. With the deepening of their cooperation, 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 high-horsepower engines.