HK Stock Market Move | CHONGQING M&E (02722) rose more than 4%, the company's subsidiary Cummins is expected to benefit from the development of large cylinder diameter and data centers.

CHONGQING M&E (02722) rose by more than 4%, rising by 4.37% to HK$2.39 at the time of publication, with a turnover of HK$19.01 million. On the news front, recently, the Chongqing State-owned Assets Supervision and Administration Commission issued the "Work Plan for Further Promoting the Enhancement of Technological Innovation Capability of Municipal State-owned Enterprises", systematically deploying "seven batches" of special tasks to iteratively upgrade the technological innovation measures of municipal state-owned enterprises. Industrial pointed out that CHONGQING M&E is held by Chongqing Control (Group) with a 58.52% stake. CHONGQING M&E Group is under the Chongqing State-owned Assets Supervision and Administration Commission, with its main business including equipment-related businesses such as turbines, electric wire and cable, gas compressors, industrial pumps, wind turbine blades, machine tools (Chongqing Machine Tool, British PTG company), as well as shareholdings in Chongqing Cummins and Chongqing Hitachi Energy. Industrial stated that CHONGQING M&E's subsidiaries Chongqing Cummins and Chongqing Hitachi Energy have high growth certainty in the coming years. Chongqing Cummins mainly produces QSN/NT, QSK19/K19, QSK38/K38, QSK50/K50, QSK60 and other models of engines and is the only large-bore engine enterprise for Cummins in China. Due to tight industry supply, the company is also actively expanding its production capacity. It is expected that the demand for high-horsepower engines in data centers and other sectors will continue to grow in the next few years.