(Yicai Global) Oct. 11 -- Shares in Ningbo Joyson Electronic soared by the exchange-imposed limit today after the Chinese auto electronic systems maker said it expects net profit to jump as much as seven times in the first three quarters from the same period last year on surging demand from the new energy vehicle sector.

Joyson’s share price [SHA:600699] leapt 10 percent to end the day at CNY14.18 (USD2). The stock, though, has lost 35 percent of its value since the start of the year.

The firm expects to rake in net profit of between CNY115 million (USD16 million) and CNY130 million in the nine months ended Sept. 30, Joyson said yesterday. This is compared to just CNY18.1 million (USD2.5 million) a year earlier. Revenue over the period is likely to climb 5 percent to CNY35.7 billion (USD5 billion).

This is despite Joyson, which mostly makes smart driving systems, vehicle safety systems and new energy power management systems, losing money in the first half. The company racked up losses of CNY105 million (USD14.6 million) in the six months ended June 30 due to outbreaks of Covid-19, the global chip shortage as well as the soaring price of raw materials and transportation. It also lost CNY3.8 billion (USD529 million) last year.

By optimizing the supply chain, reducing expenses and negotiating with clients, Joyson was able to make quite a comeback and is set to realize net profit of as much as CNY235 million (USD32.7 million) in the three months ended Sept. 30, the Ningbo, southeastern Zhejiang province-based company said.

New orders from the NEV sector have jumped this year and are expected to make up over half of the firm's revenue, as smart electric cars claim an increasingly bigger share of China’s auto market.

NEV sales more than doubled in the first nine months from a year ago to 3.9 million units, accounting for a quarter of all China's passenger car sales, as supportive policies come into effect, according to data released by the China Passenger Car Association today.

Editor: Kim Taylor