Manz AG soared to the highest price in more than two years after the German manufacturing-equipment maker received its first order from a Chinese customer for machines to produce organic light emitting diode displays.
Manz rose as much as 11 percent to 37.40 euros, the highest intraday price since June 7, 2011, and was trading up 9.6 percent at 3:20 p.m. in Frankfurt. The market value stood at 165 million euros ($218 million) and the trading volume was more than double the three-month daily average.
The 9 million-euro sales contract, the first major order following some small purchases, offers Manz “considerable revenue potential” because of growth in the displays’ use in smartphone and tablet-computer touchscreens, the Reutlingen, Germany-based company said today in a statement. It didn’t identify the equipment’s buyer.
“The order is not significant by volume but strategically important, as it is the first bigger order for OLED displays from China and promises follow-up orders,” Christoph Rodler, a Hamburg-based analyst at M.M. Warburg, said by phone today. “OLED is a new technology, an alternative to LED or LCD systems, but still expensive,” said the analyst, who has a hold recommendation on the stock.
Manz supplies the display, solar and battery industries. It generated less than 10 percent of revenue from the solar division in 2012, compared to almost 40 percent in 2010, according to data compiled by Bloomberg.
“The solar segment was doing badly last year and we expect the company to break even in the first half,” Rodler said. Manz said in May that first-quarter orders in the display and battery segments were more than making up for continued weak new business at the solar unit. The manufacturer reports second-quarter earnings figures on Aug. 13.