HK Stock Market Move | CHONGQING M&E (02722) rose more than 6%, institutions are optimistic about its business benefiting from AI and Yaxia projects.

CHONGQING M&E (02722) rose more than 6%, up 6.45% at the time of publication, trading at 1.98 Hong Kong dollars, with a turnover of 39.3618 million Hong Kong dollars. On the news front, Guoyuan International previously reported that on November 6, the company was included in the MSCI Global Small Cap Index, with this adjustment officially taking effect after the close on November 24, 2025. Considering that the company's entry into the MSCI Global Small Cap Index is beneficial for improving liquidity, it is believed that the company's reasonable valuation should be a PE ratio of 11 times in 2025, corresponding to a target price of 2.91 Hong Kong dollars per share, maintaining a "buy" rating. In addition, the bank believes that the AI and Yaxia projects are expected to support the growth of the transformer, engine, hydropower, and transmission equipment businesses. From November 5th to 6th, CHONGQING M&E held a new round of investor reverse roadshow activities. According to the company's announcement, this year, the company's various business segments have actively responded to changes in the market environment, continuously optimized internal operational management, and constantly improved lean management efficiency. According to the company's operating conditions from January to October 2025 and unaudited financial statements, by the end of this year, the company will continue its current steady growth trend, with operating income and total profit expected to achieve good growth year-on-year, basically achieving annual operating targets.