By Yifan Wang
Shares of Feilong Auto Components jumped in China, as investors welcomed the auto parts maker’s latest guidance for a sharply higher first-half profit.
The stock surged 10%, its maximum allowed daily percentage gain, to 16.84 yuan ($2.33) in Shenzhen on Wednesday.
The rally came after Feilong Auto late Tuesday said it expects first-half net profit to increase fivefold to sixfold, compared with the same period a year earlier, citing “ample orders” and higher revenue from exports.
Feilong’s gains also came amid growing hopes for a recovery in auto sales in China as many key auto makers are scheduled to launch new models later this year. The expected rebound in car sales and the rising adoption of premium auto components by car makers could boost growth and profitability for parts suppliers like Feilong.
Write to Yifan Wang at [email protected]
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