(Yicai) Oct. 26 -- Shares of Jiangsu Bojun Industrial Technology, a large Chinese maker of precision molds and auto parts, soared after it announced a capacity expansion plan along with robust earnings for the first nine months of the year.

Bojun [SHE: 300926] closed 9.4 percent higher at CNY35.20 (USD4.81) a share in Shenzhen today, after surging by as much as 15.2 percent in the early afternoon. The stock’s value has soared more than five-fold since the end of last year.

Bojun will invest CNY2 billion (USD273.4 million) in an expansion project in Chongqing after inking a deal with an industrial park developer under the local government, the Kunshan-based firm announced late yesterday.

A project company will be set up to oversee construction of a new factory in the city, which is one of China's major auto production hubs, it added.

Bojun's initial investment in the project, which will focus on the design, research, development, and manufacture of precision molds and auto parts, will be around CNY700 million, it pointed out, adding that the first phase of the factory will likely be completed in 24 months.

Bojun’s strong earnings are a factor behind its latest expansion plan. Net profit surged 125 percent to CNY182 million (USD24.9 million) in the nine months ended Sept. 30 from a year earlier, powered by rapid growth in China's auto industry, the company said in a separate statement. Revenue doubled to CNY1.7 billion (USD232.3 million).

First-half profit skyrocketed 149 percent to CNY95.2 million (USD13 million), while revenue jumped 118 percent to CNY1 billion, according to Bojun’s trading report released in August. Last year, profit rose 75 percent and income 73 percent.

Bojun's customers are mainly first-class auto parts suppliers and vehicle manufacturers, including ThyssenKrupp, Magna International, BYD, and Ford Motor, the firm said in its 2022 earnings report. New energy vehicle startups Li Auto and Hycan Automobile Technology are also clients.

Editor: Martin Kadiev