(Yicai Global) Jan. 28 -- Shares of Chinese metal powder maker Yitong New Materials jumped after the firm said it will spend CNY768 million (USD120.8 million) to build a green energy equipment factory that could almost quadruple its annual net profit.

Yitong's stock price [SHE:300930] soared as much as 10.4 percent to CNY30.58 (USD4.80) intraday. The shares are almost 8 percent higher over the past 12 months.

The maker of alloy materials will produce 20,000 units of main bearings for wind turbines and hydroelectric power plants, as well as other renewable energy equipment in the new factory per year, the Hangzhou-based firm said in a statement yesterday. The project should be ready in 24 months.

The plant should bring about CNY370 million (USD58.2 million) in net profit and about CNY1.5 billion (USD236 million) in revenue to the company per year, Yitong predicted.

The gains could be major for the firm. Yitong said earlier that its net profit would range between CNY93 million to CNY99 million (USD15.6 million) last year. In the first three quarters of 2021, Yitong reported CNY69.5 million in net profit. Its revenue was CNY395 million.

Editor: Emmi Laine, Xiao Yi