FIBOCOM Shares Surge Nearly 15% at Open on Plan to Acquire Control of Hangsheng Electronics

FIBOCOM (00638) opened sharply higher, rising nearly 15% in early trading. As of the time of writing, the stock was up 14.98%, trading at HK$13.82, with a turnover of HK$7.3909 million. The surge follows the company's announcement that it is planning to acquire a controlling stake in Hangsheng Electronics through a cash transaction. The final transaction price and acquisition ratio are still subject to further evaluation and negotiation. Upon completion of the deal, Hangsheng Electronics will become a controlled subsidiary of FIBOCOM. Public information indicates that Hangsheng Electronics is a leading enterprise in China's automotive electronics industry. According to data from Gasgoo Research Institute, the company ranks third in the industry for installed volume as an integrated supplier of central control screens and eighth for integrated automotive LCD instrument cluster screens. Its customer base includes major joint-venture automakers such as Dongfeng Nissan, FAW Toyota, GAC Toyota, and FAW-Volkswagen, as well as domestic brands and new energy vehicle makers like BYD, GAC Aion, XPeng, Li Auto, and NIO. The company also supplies products and services to global automakers including Nissan, Toyota, and Stellantis.