(Yicai Global) March 10 -- Shares of Tianma Microelectronics, a Chinese maker of liquid-crystal display panels, soared after an industry analyst said the firm is likely to be included in Apple’s supply chain.

Tianma Micro [SHE: 000050] surged by the 10 percent daily trading limit to close at CNY10.73 (USD1.54) a share today. So far this year, the Shenzhen-based company’s stock price has risen by 24 percent.

Tianma Micro will be the exclusive screen supplier for Apple’s next generation of HomePods, TF International Securities analyst Ming-Chi Kuo said in an article posted today on blogging platform Medium. The new smart speaker will use a 7-inch screen and is expected to hit the market by the first half of next year, he added. 

Tianma Micro could also play a larger role in Apple’s supply chain in future if shipments of HomePod screens go smoothly, Kuo noted, saying the company may land orders for iPad screens next.

A member of staff at Tianma Micro told Yicai Global that he had not heard about the company becoming a supplier for Apple’s HomePods.  

Set up in 1983, Tianma Micro mainly produces small and medium-sized LCD panels, including those used for mobile phones and in cars.

During the first three quarters of last year, the firm’s net profit fell 29 percent to CNY362 million (USD52 million) from a year earlier on a 4 percent decline in revenue to CNY24.2 billion (USD3.5 billion), its latest earnings report showed. 

Editor: Tom Litting