(Yicai Global) July 8 -- Zhende Medical’s shares climbed to a record after the Chinese medical supplies maker said first-half earnings likely made stellar gains thanks to strong demand amid the coronavirus pandemic.
The firm’s stock price [SHA:603301] jumped by the daily exchange-imposed limit of 10 percent today to close at CNY78.11 (USD11.10).
Net profit may come in at CNY955 million (USD136.2 million) for the six months ended June 30, compared with CNY60.1 million a year earlier, the Zhejiang province-based company said in a statement late yesterday. Operating income likely rose to between CNY3.7 billion (USD527 million) and CNY3.9 billion from CNY762 million.
The strong performance was mainly due to swelling sales of personal protective equipment such as masks and protective clothing, which is expected to have reached between CNY2.6 billion and CNY2.7 billion, compared with CNY34 million a year ago.
Zhende Medical’s sales channels have expanded rapidly, and its market share and coverage have increased after acquiring 55 percent of UK-based Rocialle Healthcare last year. First-half revenue, excluding anti-pandemic protective equipment, is expected to have gained 55 percent to 66 percent to between CNY1.12 billion and CNY1.2 billion, per the statement.
A year ago, the company said it and a partner would also buy the operating assets, liabilities and medical supply businesses of UK-based Berendsen Healthcare, including its surgical product brands Rocialle and Guardian Single Use. Zhende Medical was to indirectly hold 55 percent of the target after the deal, it said.