China's Yadea hits 3-month peak on buying electronic components supplier

Yadea group

18/03/2024 03:23

** Shares of electric two-wheeled vehicles maker Yadea Group
Holdings Ltd  1585.HK  rise 3.5% to HK$14.18, their highest
since Dec 18
    ** Stock marks the biggest one-day pct gain since March 12
and on track for the second session of rise
    ** Yadea to buy intelligent control system solutions and
products developer Wuxi Lingbo Electronic Technology for 351.5
mln yuan ($48.84 mln) in a move to enhance vertical integration
of its supply chain and reduce costs, among others
    ** Citi keeps "buy" rating on Yadea saying acquisition can
bring benefits including cost savings, R&D synergies and can
help the firm produce better products for expanding overseas
while driving up sales 
    ** Hang Seng Tech Index  .HSTECH  climbs 0.8%, Hang Seng
Composite Index  .HSCI  gains 0.3% and Hang Seng Index  .HSI 
adds 0.1%
    ** Stock up 2.2% YTD  


($1 = 7.1970 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))