(Yicai Global) March 23 -- Shares of Cubic Sensor and Instrument rose nearly 5 percent after the Chinese firm said it expects to gain CNY232 million (USD34 million) by supplying air quality sensors to a well-known European carmaker.

Cubic Sensor’s stock price [SHA: 688665] surged as much as 4.8 percent to CNY113.30 (USD16.60) intraday and closed 1.7 percent up.

The gas sensor manufacturer has received a designated supplier notification from a European marque, the Wuhan-based firm said in a statement yesterday, without disclosing the name of the brand. Cubic Sensor will provide equipment to measure air quality, including the content of PM2.5 particles and carbon dioxide, in four car models. The life span of the related car models are expected to be eight or nine years.

The qualification reflects the European brand’s recognition of Cubic Sensor's research and development and supply chain prowess, as well as product quality, the Chinese firm said, adding that a supply contract signed later should contribute to Cubic Sensor’s operating results as early as this year.

Vehicle sensors are becoming an increasingly major product segment for Cubic Sensor as such sales more than doubled in 2021 from 2020, according to its 2021 annual earnings report.

Editor: Emmi Laine, Xiao Yi