HK Stock Market Move | SINOHYTEC (02402) soared more than 16% in the morning, and the evaluation work related to the asset acquisition is in progress.

SINOHYTEC (02402) surged more than 16% in the morning, and as of the time of writing, it had increased by 11.75%, reaching HK $25.2 with a turnover of HK $338.023 million. On the news front, on April 11, SINOHYTEC announced its plan to purchase 100% equity of Dingzhou Xuyang Hydrogen Energy Co., Ltd. by issuing shares and raise supporting funds. The related proposal has been reviewed and approved by the board of directors and the supervisory board, and due diligence, audit, evaluation, and other work are in progress. It is worth noting that around 36.3976 million restricted shares of SINOHYTEC will be listed for trading from April 18, accounting for 22.84% of the current circulating A shares. Changjiang pointed out that SINOHYTEC's acquisition of Xuyang Group's hydrogen-related assets will help achieve industry synergy between both parties. The bank mentioned that extending to the upstream of the industry chain is a key strategic direction for the fuel cell industry to solve its development difficulties; as Xuyang Group is a large coking enterprise, its transportation scenarios align well with hydrogen-powered vehicle transportation scenarios, and the related transportation routes can gradually be replaced by hydrogen-powered vehicle transportation, which will help drive SINOHYTEC's fuel cell sales and CKH Holdings' hydrogen absorption. The integration of both parties will further strengthen the listed company's full-chain research and development capabilities around the hydrogen industry chain.