Changes in Hong Kong stocks | Lixun Precision's two acquisitions broaden the industrial chain layout KFM Jinde (03816) rose more than 13%, Zhifeng Industrial Electronics (01710) rose more than 12%

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that KFM Jinde (03816) and Zhifeng Industrial Electronics (01710) rose again today. As of press release, KFM Gold rose 8.56% to HK$5.075; Zhifeng Industrial Electronics rose 7.27% to HK$1.77.

According to the news, Lixun Precision recently announced two acquisition plans. The company plans to acquire 57% of KFM Jinde's shares for approximately HK$684 million, while also subscribing for KFM's zero-interest convertible bonds of approximately HK$252 million. In addition, Lixun Precision plans to acquire 75% of the shares in Hong Kong Stock Zhifeng Industrial Electronics. If the potential transaction is implemented to completion, it may trigger a mandatory full cash offer.

Analysts pointed out that judging from industry logic, the purpose of this merger and acquisition is to reinforce Lixun's manufacturing capabilities in industrial power supplies and mechatronics, serve the two major strategic directions of AI hardware and automotive electronics, and improve the vertical supply chain layout. The acquisition of KFM is intended to supplement precision metal structural parts and stamping capabilities, and is expected to accelerate the expansion of the company's production capacity in Southeast Asia through KFM's manufacturing base in Malaysia and production expansion plans.