The Zhitong Finance App learned that Huaxin Construction (06655) rose more than 3%. As of press release, it had risen 3.22% to HK$14.75, with a turnover of HK$51.362 million.
According to the news, Huatai Securities released a research report stating that Huaxin Materials announced a transaction related to the acquisition of Horui's Philippine assets, and plans to acquire Holcim Philippines Inc. (HPI) shares held indirectly and directly by HolderFinB.v., in two stages through Huaxin Central Asia Investment (Wuhan) Co., Ltd., a wholly-owned holding subsidiary of HolderFinB.v. Huatai Securities believes that this merger and acquisition will greatly strengthen the company's layout in Southeast Asia. Overseas cement production capacity will increase to 45.15 million tons/year. The transaction capacity valuation ratio is reasonable. At the time of acquisition, it is at the bottom of both the Philippine cement market and the underlying asset management, and improvements in flexibility can be expected in the future.
According to Huaxin Construction's disclosure announcement, the core target company of this transaction has four integrated cement clinker plants and a cement grinding station in the core areas of Luzon and Mindanao in the Philippines, with an annual clinker production capacity of 5.2 million tons and an annual cement production capacity of 9 million tons. It has rich limestone resources and good location advantages, and has considerable potential for technology and management optimization after the merger and acquisition.