=MARKET BUZZ: China Lesso Rises On Xingfa Stake Buy; Analyst Sees Synergy
HONG KONG (Apr 17) -- China Lesso Group Holdings rises 0.8% to HK$6.16; stock rose as much as 3.1% earlier after building-materials company agreed to buy 26.28% of Xingfa Aluminium Holdings. China Galaxy International says stake purchase in Xingfa to create synergy with China Lesso's plastic pipes business, lifts latter's estimated earnings by 2.3% for 2018 and 4% for 2019, to reflect earnings contribution from Xingfa as associate. House raises China Lesso's target price to HK$7.90 from HK$7.70. Xingfa Aluminium, meanwhile, falls 2.1% to HK$6.68 in choppy trading. Stock opened 10% higher at HK$7.50 and then retreated to low of HK$6.25. Note, China Lesso acquired its stake in company at valuation of HK$8.8631 per Xingfa share.
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