(Yicai) July 11 -- Shares of Asia-Pacific Mechanical & Electronic surged after the Chinese auto parts supplier said it received an electronic parking brake order worth up to CNY3.8 billion (USD522 million) from a foreign carmaker.

Asia-Pacific Mechanical [SHE: 002284] soared 7 percent to CNY7.34 (USD1.01) a share as of 1.35 p.m. in Shenzhen today.

Asia-Pacific Mechanical was named the designated supplier of an overseas carmaker to supply EPBs for its two new models, the Hangzhou-based firm announced late yesterday. The project will likely start mass production in 2026 and is expected to end in 2034, it added.

This is Asia-Pacific Mechanical's first EPB order from a foreign client, which can help develop its global market presence if it goes well, the company noted, without disclosing the customer's name due to a confidentiality agreement.

Asia-Pacific Mechanical also released its earnings forecast for the first half of this year on the same day, with its net profit likely jumping 33 percent to 62 percent to between CNY90 million and CNY110 million (USD12 million and USD15 million) from a year earlier thanks to a surge in domestic sales and the start of mass production for a new deal from an overseas client. Its first-quarter profit soared 59 percent from a year ago, it noted.

Asia-Pacific Mechanical focuses on the research, development, and production of auto braking systems and related electronic parts, with its products entering the global procurement platforms of Volkswagen Group, General Motors, Honda Motor, Nissan Motor, Stellantis, and other foreign carmakers. 

Asia-Pacific Mechanical's income from electronic control unit sales reached CNY781 million (USD107 million) last year, accounting for 20 percent of its total, according to its annual financial report. Revenue from overseas sales made up just 3 percent.

Editor: Martin Kadiev