(Yicai Global) April 7 -- Shares of Great Star Industrial rose after the Chinese auto and hand tool vendor received a significant power tool order from a large US chain retailer.

Great Star's stock price [SHE: 002444] jumped 4.8 percent to CNY17.36 (USD2.70). The shares are still down by more than 50 percent over the past 12 months.

A big American retailer will purchase batches of a 12-volt power tool from the Chinese firm in the next three years to sell them in its around 2,000 outlets in North America, the Hangzhou-based company said in a statement yesterday. The first shipment should be delivered in the second half of this year.

Great Star didn't disclose the name of the buyer but said it is a high-ranking Fortune Global 500 company and one of the Chinese firm's top five clients. Great Star’s major customers that are chain retailers in North America are Lowe’s, Home Depot, and Walmart, according to public information. 

The supplier is expecting to receive USD15 million for the above-mentioned orders in the second half, equaling 50 percent of Great Star’s revenue from the same product in 2020. The deal is a substantial breakthrough for Great Star as it resumed its power tool business in 2020. It indicates that the company's electric power tools have been recognized by core clients abroad, it said.

The power tool business should keep growing rapidly to become an important business growth point for Great Star after such revenue more than doubled last year due to the company's sales channels worldwide, it concluded. 

Editor: Emmi Laine, Xiao Yi