HK Stock Market Move | CHONGQING M&E (02722) rose by over 11% again, with an expected 50% increase in mid-term net profit compared to the same period last year. Rapidly growing demand for AIDC diesel engines.

CHONGQING M&E (02722) surged over 11% again, rising more than 40% in the month. As of the close, it rose 7.82%, to HK$1.93, with a turnover of HK$84.25 million. On the news front, CHONGQING M&E announced that the group expects the net profit attributable to shareholders in the first half of the year to increase by around 50% compared to the same period in 2024. This growth is mainly attributed to the continued improvement of lean management levels in the group, significant improvement in the operating performance of the hydraulic power generation equipment business, and increased investment income from the large horsepower engine business and ultra-high voltage transmission and transformation business. Huatai previously released a research report stating that, with the rapid development of AI, AIDC has become an important infrastructure for AI, and the construction of its data is also fast. Considering the usage time and comprehensive needs, diesel generators are still the core backup power source for data centers. The bank pointed out that Chongqing Cummins Engine Co., Ltd. is a joint venture of CHONGQING M&E, established in 1995, and is the only large horsepower engine research and manufacturing base for Cummins in China.