CHONGQING M&E

Chongqing Machinery & Electric (2722.HK) opened low and rallied higher, closing up 6.97% at HKD 2.15, mainly driven by the announcement of a final dividend of RMB 0.06 per share for FY2025, coupled with Q4 net profit of HKD 193 million surging 125.3% YoY. The morning session saw a gradual climb from HKD 2.01 to 2.16, followed by high-level consolidation in the HKD 2.13-2.17 range during the afternoon, with total volume reaching 12.93 million shares and turnover of HKD 27.6 million, showing significant volume expansion. Despite a PE of 9.37x and PB of 0.81x, the stock remains 43.72% below its 52-week high of HKD 3.82 and trades below both the 20-day MA (HKD 2.417) and 60-day MA (HKD 2.796), implying valuation headroom but near-term resistance. Nonetheless, the YTD gain of just 13.16% contrasts with a 99% rebound from the 52-week low of HKD 1.08, suggesting potential profit-taking pressure ahead.