(Yicai Global) March 29 -- Shares of Shuanghuan Driveline surged nearly 5 percent after the world's biggest maker of automotive gears said it expects to gain over CNY1 billion (USD145.1 million) as its products will appear in cars of a premium brand in the European new energy vehicle market.
Shuanghuan [SHE: 002472] closed 3.3 percent higher at CNY27.10 (USD3.90) after soaring 4.7 percent intraday.
A well-known global auto parts firm, which counts leading car marques as its clients, has chosen Shuanghuan as its designated developer and manufacturer of precision gear products for the firm’s electric drive system which eventually will be installed in units of a premium NEV brand, the Hangzhou-based company said in a statement yesterday, without disclosing the name of the client and the brand.
The Chinese firm will start delivering products next year and continue to do so during the life span of the NEV model which is expected to be nine years.
Shuanghuan has benefited from the rising NEV industry and the rapidly growing demand for gear products, as the company recorded a net profit increase of 80 percent to CNY587 million (USD85.2 million) last year from 2021. Meanwhile, revenue surged 27 percent to CNY6.9 billion (USD1 billion), according to the annual report released yesterday. Income coming from sales of NEV gears surged more than three times.
In the first quarter of this year, net profit is expected to rise between 33 and 43 percent to a point between CNY158 million and CNY170 million, much higher than the sum of CNY119 million logged a year ago, once again caused by the growth of its NEV gear business, Shuanghuan said in a separate earnings forecast yesterday.
Editor: Emmi Laine, Xiao Yi