HK Stock Market Move | KFM KINGDOM (03816) surged over 11% intraday as Luxshare Precision Industry acquired a controlling stake in the company to complete its industry chain layout.

KFM KINGDOM (03816) rose over 11% intraday. As of press time, it was up 4.50% at HK$4.525, with a turnover of HK$4.6947 million. On the news front, Luxshare Precision Industry previously announced that it would acquire a 57% stake in KFM KINGDOM for HK$684 million, taking a controlling stake. Citi believes that KFM KINGDOM's consolidated contribution to Luxshare Precision Industry's revenue and profit is less than 0.5%, but the focus of the deal lies in precision metal structural parts and stamping process capabilities, while leveraging KFM's existing manufacturing base in Malaysia and supporting capacity expansion plans to accelerate production capacity layout in Southeast Asia.