(Yicai) Feb. 20 -- Cheersson Precision Metal Forming's shares jumped after the supplier of industrial precision parts said its subsidiary was named the designated parts supplier to a high-end Chinese carmaker in a deal that will likely to bring revenues of CNY900 million (USD125 million).

Cheersson [SHE: 002976] surged by its 10 percent daily trading limit in Shenzhen today to close at CNY21.51 (USD2.99) a share. The stock is still 40 percent down on the end of last year.

Pulaide Auto Tech Suzhou will supply front and rear air spring assembly products, which are used in air suspension systems, for the buyer’s new vehicle development platform over six years, Suzhou-based Cheersson said late yesterday.

The order is a sign of Pulaide’s strength and recognition of its products' quality by domestic carmakers, encouraging the unit to speed up its expansion in the Chinese auto market, its parent company added.

Pulaide was set up by Cheersson and the UK’s Pneuride in 2022 to develop the Chinese market for vehicle air suspension systems. Before forming the joint venture, Cheersson a controlling interest in the Coventry-based firm.

Editor: Martin Kadiev