(Yicai Global) April 27 -- Goertek’s shares soared after the world's leading foundry of augmented and virtual reality gear forecast a first-half profit gain of as much as 55 percent from a year earlier thanks to strong sales of VR products and smart video-game consoles.

Goertek [SHE: 002241], which makes VR headsets for top brands such as Meta Platforms, Sony and HTC, climbed by the exchange-imposed daily limit of 10 percent today, closing at CNY30.39 (USD4.64).

Net profit, after non-recurring gains and losses, will range between CNY1.9 billion and about CNY2.2 billion (USD290 million and USD336 million), according to the Weifang-based firm’s projection released late yesterday along with its first-quarter earnings report.

Net profit jumped 46 percent to CNY878 million (USD134 million) in the three months ended March 31 on a 43 percent increase in revenue to CNY20.1 billion (USD3.1 billion), the report showed.

Smart hardware has become the main earnings contributor amid booming demand for VR products and smart video-game consoles. Income from this business reached CNY10.1 billion (USD1.6 billion) in the first quarter, up 125 percent and accounting for about half of Goertek’s total revenue in the period.

According to its 2021 financial report, the smart hardware business contributed 42 percent to overall revenue last year, up from it about 30 percent in 2020. 

Editor: Tom Litting