HK Stock Market Move | CHONGQING M&E (02722) rose more than 9% during the day, high horsepower engine demand is strong, transformer business is expected to drive profits.

Chongqing M&E (02722) rose more than 9% during trading hours, and as of the time of writing, it has risen by 5.43%, reaching HK$2.33 with a trading volume of HK$64.63 million. China Securities Co., Ltd. previously released a research report stating that the demand for large horsepower engines in Chongqing Cummins is in a strong state due to the AIDC promotion. The bank pointed out that Chongqing Cummins Q60 has the capacity for mass supply, and sales of large horsepower engines increased by 8% in the first half of the year. American Cummins announced that it received a investment income of US$68 million in the previous 9 months from Chongqing Cummins, a YoY increase of 33.3%. In the third quarter of 2025, it received an investment income of US$23 million, a YoY increase of 53.3%. EB SECURITIES International indicated that AI computing highly relies on large-scale data centers. The basic function of transformers is to reduce high voltage electricity from the grid to a voltage usable by data center equipment, which is crucial in determining whether electricity can be converted into computing power. Chongqing Hitachi Energy, in which the company holds a 37.8% stake, is Hitachi Energy's largest high-voltage transformer manufacturing base in China. In a scenario where demand for transformers exceeds supply, it is expected that the investment income from this business will drive the company's profit growth rate.