HK Stock Market Move | CHONGQING M&E (02722) rises more than 5% to reach a new high. Chongqing Cummins and Chongqing Hitachi Energy significantly benefit from the AI infrastructure wave.

CHONGQING M&E (02722) rose more than 5% in the final trading session, reaching a high of 3.11 Hong Kong dollars, hitting a new historical high again. As of the time of this report, it had increased by 5.07%, trading at 3.11 Hong Kong dollars, with a transaction amount of 52.6737 million Hong Kong dollars. On the news front, the shortage of power supply has become a core bottleneck restricting the expansion of AI computing power. Some institutions have stated that the development of AI in North America requires the construction of large-scale data centers, and considering the weak power grids and the shortage of infrastructure supply chain, this situation is expected to continue until 2028. They are optimistic about the Chinese supply chain (such as gas turbines, transformers, etc.). Industrial previously released a research report, stating that Chongqing Hitachi Energy is one of Hitachi's main global production bases for super high voltage transformers above 750KV and benefits from overseas high-voltage grid construction. Chongqing Cummins is the only large bore engine company in China owned by Cummins. Due to industry supply constraints, the company is also actively expanding its production capacity. The demand for high horsepower engines in data centers and other fields is expected to continue to grow in the coming years.