(Yicai Global) Oct. 28 -- Luxshare Precision Industry’s share price held steady as investors refused to lose faith in the Chinese electronics device maker despite it posting a 25 percent plunge in profit in the third quarter from the same period last year affected by the global chip shortage, high raw material costs, sporadic Covid-19 outbreaks and other factors.

Luxshare’s share price [SHE:002475] closed up 2.02 percent today at CNY38.89 (USD6). Earlier in the day it had fallen 3.5 percent to CNY36.75.

The firm will see a turning point in the fourth quarter and should post a 3.8 percent gain in 2021 profit from last year, China Merchants Securities said today. China International Capital also believes that Luxshare’s profitability will rebound and gave it a Buy rating.

The firm earned profit of CNY1.6 billion (USD250 million) in the three months ended Sept. 30, according to its latest financial report released yesterday. Delivery of some of the Shenzhen-based company’s key products were delayed due to a lack of raw materials, which impacted on revenue, profit and operating expenses, it said.

Revenue, though, was up 42 percent in the third quarter year on year to CNY32.9 billion (USD5 billion), the report said. Profit over the first nine months was up 0.21 percent year on year at CNY4.7 billion and revenue gained 36 percent to reach CNY81 billion.

Editor: Kim Taylor