To The Moon

XXF Group (02473) surged more than 9% again, bringing its cumulative gain to nearly 50% since last Monday. At the time of writing, the stock was up 6.98%, trading at HK$11.49, with a turnover of HK$328 million. The recent surge follows the company's announcement that its indirect wholly-owned subsidiary has signed a memorandum of understanding with Kuangshi Technology. XXF Group intends to acquire a 51% controlling stake in Kuangshi Technology through either a share purchase or a capital increase. This strategic move signifies the comprehensive automotive service platform's deeper foray into the core technology segments upstream in the intelligent driving industry chain. Public information reveals that Kuangshi Technology is a total solution provider for millimeter-wave radar, possessing in-house R&D capabilities across the entire chain from "chip-algorithm-module-complete machine-system platform." As an indispensable environmental perception sensor for advanced driver-assistance systems and future autonomous driving systems, millimeter-wave radar, with its unique advantage of stable detection of distance and speed in adverse weather, forms the "sensory system" of smart vehicles alongside cameras and LiDAR. The technology boasts high barriers to entry and broad market prospects.