Added to YB: 2025-07-23
Pitch date: 2025-07-21
2722.HK [bullish]
Chongqing Machinery & Electric Co., Ltd.
+23%
current return
Author Info
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Company Info
Chongqing Machinery & Electric Co., Ltd., together with its subsidiaries, designs, manufactures, and sells clean energy equipment and high-end smart manufacturing equipment.
Market Cap
HKD 6.4B
Pitch Price
HKD 1.65
Price Target
3.30 (+63%)
Dividend
2.01%
EV/EBITDA
31.59
P/E
10.62
EV/Sales
0.66
Sector
Industrial Conglomerates
Category
special_situation
Chongqing Machinery & Electric: Things Are Not What They Seem
2722.HK: 'Hidden asset' 50% stake in Chongqing Cummins Engine JV (CCEC), beneficiary of China AI datacenter boom. At 11x P/E vs Cummins' 17x, undervalued. CCEC 2024 revenue $917M (+26% YoY), $120M profit (13% margin). China hyperscalers accelerating capex. Risks: operating losses, Weichai competition, potential BESS substitution.
Read full article (8 min)