Chint Shares Gain After Profit Beats Estimates: Beijing Mover
Zhejiang Chint Electrics Co. (601877), a Chinese maker of power transmission and solar power equipment, rose the most in more than a month in Shanghai after it reported profit that exceeded analysts’ estimates.
The shares jumped as much as 5.95 percent to 14.59 yuan and closed up 4.9 percent at 14.45 yuan in Shanghai, the highest level since Dec. 1. China’s benchmark Shanghai Composite Index gained 0.8 percent.
Chint Electronics, based in eastern China’s Zhejiang province, said late yesterday that 2011 net income increased 27.8 percent to 816.7 million yuan ($129.6 million). That exceeded the 773 million yuan median estimate of five analysts surveyed by Bloomberg.
“The company did a nice job in controlling costs in the fourth quarter and managed to keep profit growth on pace with revenue increases,” Yao Wei, a Beijing-based analyst at Founder Securities Ltd., said by telephone today. “The company may still manage about 20 percent growth in 2012 profit as long as it can effectively control costs,” said Yao, who rates the shares “add.”
Revenue increased 31 percent last year to 8.3 billion yuan, the company said in a filing to Shanghai’s stock exchange after the close of markets yesterday.
Chint Electronics, which listed shares in Shanghai in January 2010, fell 45.3 percent last year, compared with a 21.7 percent drop for the Shanghai Composite Index. (SHCOMP) This year, the stock has gained 10 percent as the index rose 6 percent.
To contact the Bloomberg News staff on this story: Guo Aibing in Beijing at email@example.com