(Yicai Global) July 14 -- BOE Technology Group’s shares rose after the leading Chinese producer of display panels used in smartphones and televisions predicted net profit increased 11 times in the first half because it raised product prices as demand surged amid a chip shortage.

After jumping as much as 5.5 percent, BOE [SHE:000725] ended 2.2 percent higher today at CNY6.54 (USD1.01). The broader Shenzhen market fell almost 1 percent.

Net profit was probably between CNY12.5 billion and CNY12.7 billion (USD1.93 billion and USD1.96 billion) in the six months ended June 30 partly because it hiked prices for products used in TVs and information-technology devices, the Beijing-based company said yesterday.

Sales were strong and BOE has been running at full production capacity. Earnings were also buoyed by the firm maintaining a leading position in the liquid crystal display market and increased output of high-end products, it said.

BOE has built a business structure centered on semiconductor displays divided into four business groups, namely Mini LED, Sensors and Solutions, Smart System Innovation and Smart Healthcare, it said in the statement. The company also plans to extend into the Internet of Things.

BOE topped the world for overall shipments of display panels last year, and in the first half of this year it continued to rank first for shipments of panel displays for smartphones, tablets, laptops, monitors and TVs.

Panel prices have been rising since last June. The cost of large LCD panels will hopefully continue to increase in the third quarter amid the ongoing tension between supply and demand, BOE said last month.

Editor: Futura Costaglione