HK Stock Market Move | Huaxin Building Materials Group (06655) rose over 3% as Morgan Stanley expects the company to finalize a Brazil acquisition that would bring potential upside to annual production capacity.

Huaxin Building Materials Group (06655) rose over 3%, up 2.86% as of press time at HK$17.96, with turnover of HK$17.5141 million. On the news front, Huaxin Building Materials Group recently announced that it plans to acquire an equity stake in Brazil's National Steel and Cement Company for approximately US$1.642 billion. Currently, Huaxin Building Materials Group operates across 14 overseas countries, with overseas clinker capacity reaching 27.5 million tonnes per year and cement grinding capacity reaching 36.8 million tonnes per year. In 2026, with its domestic cement business facing severe challenges, overseas operations became an important contributor to the company's performance. The announcement stated that this project is one of the company's key initiatives to actively advance its overseas multi-business development strategy and establish a presence in emerging high-potential markets; it is also a milestone event for the company in expanding into the South American building materials market. Morgan Stanley noted that Huaxin Building Materials Group announced the acquisition of a 99.99% equity stake in Brazil's National Steel and Cement Company, and expects the acquisition to bring 17 million tonnes of annual cement production capacity; the bank said the transaction aims to establish an overseas business platform, and expects potential upside in the company's capacity utilization rate, production efficiency, and cost control. The bank noted that the transaction agreement implies an enterprise value of BRL12.7 billion (approximately US$2.309 billion), with equity valued at approximately BRL9.034 billion (approximately US$1.642 billion).