(Yicai Global) April 26 -- Shares of Yuyue Medical Equipment and Supply soared after Indian medical facilities placed orders for up to 18,000 oxygen concentrators with the Chinese medical devices leader in recent days.

Nanjing-based Yuyue Medical [SHE: 002223] soared by the 10 percent trading limit today before ending 5.6 percent higher at CNY29.2 (USD4.50). The broader Shenzhen Component Index fell 0.9 percent.

Cailian Press reported that orders will grow as demand surges for oxygen concentrators, devices important in treating Covid-19, amid a severe and virulent second wave of the Covid-19 pandemic in India. The South Asian country is seeking supplies from abroad, according to overseas media reports.

Amid the second wave, the number of confirmed coronavirus cases in India rose to 17.3 million at midday today, according to data from the Indian Ministry of Health and Family Welfare. The country reported 352,991 newly confirmed cases in the past 24 hours, a new daily record. With an additional 2,812 deaths, India’s total fatalities stand at 195,132.

Oxygen Shortfall

As the contagion worsens, shortages of hospital beds and medical supplies, including of oxygen and medicines, have been reported across India. The price of oxygen cylinders on the black market has spiked seven-fold.

Yuyue Medical leads the market for oxygen concentrators, blood pressure monitors, and surgical instruments, and overseas exports. It has received many inquiries and orders from institutions in India and various donors, according to an insider. The company has a large production capacity and fast delivery, so orders are expected to continue surging.

While China basically entered a stable period of epidemic prevention and control last year, the pandemic continued to spread globally. As a result, Yuyue Medical received orders from dozens of countries.

Net profit at Yuyue Medical jumped 134 percent to CNY1.8 billion (USD278 million) last year from a year earlier on a 45 percent gain in revenue to CNY6.7 billion (USD1.03 billion). Its respiratory supplies division, which includes ventilators and oxygen concentrators, had revenue of CNY2.3 billion, an 86 percent increase.

Editor: Peter Thomas