SF Diamond Rises Most Since Debut After Reporting Profit Gain
SF Diamond Co., a Chinese maker of drill bits and cutting tools, gained the most since its trading debut in Shenzhen more than five months ago after saying first- half profit rose 7 percent from a year earlier.
The company gained by the 10 percent daily limit to 26.51 yuan, the biggest one-day increase since the stock began trading in Shenzhen on Feb. 15. China’s benchmark Shanghai Composite Index rose 0.1 percent.
SF Diamond’s first-half earnings report implies a 53 percent increase in second-quarter net income from a year earlier, compared with a 57 percent decline for profit in the first-three months of the year. The company, based in the city of Zhengzhou in central China’s Henan province, said first- quarter profits fell partly due to one-time expenses associated with its listing.
First-half profit rose to 18.2 million yuan ($2.83 million) from 17 million yuan a year earlier, according to a statement filed to Shenzhen’s stock exchange yesterday, which didn’t give quarterly numbers. Second-quarter profit increased to 15 million yuan from 9.9 million yuan, according to figures Bloomberg derived from the company’s financial reports.
A man who answered the phone at the office of SF Diamond’s board secretary, who declined to give his name, said he couldn’t immediately confirm the derived figures.
The company produces drill bits for mining that have a layer of polycrystalline diamonds. It also produces cutting tools and abrasives using the material, which consist of numerous small synthetic diamond grains.
SF Diamond also plans to invest 132 million yuan in a production line to manufacture 668,000 polycrystalline diamond compact picks and 25,000 drilling bits a year, according to a separate statement yesterday.
--Emma Dong. Editor: John Liu
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