HX BLDG MAT (06655) shares climbed more than 3%, trading at HK$14.75 as of the latest update, with a turnover of HK$51.3262 million.
According to a research note from Huatai Securities, HX BLDG MAT announced a connected transaction to acquire assets of Holcim Philippines Inc. (HPI). The plan involves a two-stage acquisition of equity in HPI, indirectly and directly held by Holderfin B.V., through its wholly-owned subsidiary Huaxin Central Asia Investment (Wuhan) Co., Ltd.
Huatai Securities believes this acquisition will significantly strengthen the company's Southeast Asian footprint, increasing its overseas cement production capacity to 45.15 million tonnes per year. The transaction's capacity valuation multiple is considered reasonable, and the acquisition timing positions HX BLDG MAT at the bottom of both the Philippine cement market cycle and the target asset's operational performance, suggesting strong potential for future improvement.
As disclosed in HX BLDG MAT's announcement, the core assets of the transaction include four integrated cement clinker and cement plants and one cement grinding station located in key regions of Luzon and Mindanao in the Philippines. These facilities have an annual clinker production capacity of 5.2 million tonnes and a cement production capacity of 9 million tonnes, along with rich limestone resources and favorable geographic advantages, indicating significant potential for technological and management optimization post-acquisition.
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