HK Stock Market Move | TOPNC (07688) rises over 7%, plans to acquire no less than 70% equity in a machine tool production and sales company, stepping up its layout in high-end CNC machine tools.

TOPNC (07688) rose over 7%, up 7.09% as of press time at HK$19.79, with a turnover of HK$4.7975 million. On the news front, TOPNC announced that on October 20, the company entered into a non-legally binding letter of intent with a potential seller and a target company to acquire no less than 70% equity of the target company. The target company is engaged in the R&D, manufacturing and sales of multi-axis multi-channel CNC machine tools and direct-drive high-speed five-axis machine tools, with products widely used in 3C precision structural parts, AI liquid cooling plates, optical module structural components, humanoid Siasun Robot&Automation precision joints and new energy vehicle components. The announcement stated that the group previously focused on large five-axis machine tools for aerospace, and this acquisition is part of its strategy to enrich its CNC machine tool product matrix and expand into high-growth downstream sectors. The group and the target company will unlock synergies in R&D, supply chain management, manufacturing, and sales and after-sales service, strengthening the group's overall competitiveness in the domestic high-end CNC machine tool industry and accelerating the process of domestic substitution of core industrial mother machine equipment.