(Yicai) Aug. 27 -- Shares in Huizhong Instrumentation surged 20 percent today after the Chinese manufacturer of smart electronic flow measurement instruments said that it has secured a contract worth up to AUD29 million (USD140.1 million) to supply an Australian city with smart water meters.

Huizhong’s share price [SHE: 300371] closed up 10.9 percent at CNY10 (USD1.43). Earlier in the day it soared by the exchange-imposed limit to hit CNY10.84.

Huizhong will supply 191,000 small-diameter water meters to a city located in New South Wales, the Tangshan-based company said yesterday. The contract value is estimated at between AUD28 million (USD19 million) and AUD29 million. No further details, such as the timetable, were given.

The contract will have a positive impact on Huizhong’s performance and the expansion of its products in overseas markets, Huizhong said. The firm’s electronic flow measurement instruments have higher accuracy than traditional meters, and when combined with wi-fi networks, can enable real-time transmission of measurement data and Internet of Things management.

The deal was secured through Huizhong’s agent, Avnet Asia, which is an electronic product trader headquartered in Singapore. Last July, Huizhong signed a strategic cooperation deal with Avnet Asia, in which Avnet Asia would act as global distributor for Huizhong's products and collaborate with customers to develop customized products. It would also serve as exclusive bilateral agent in the Australian and New Zealand markets.

Last year, Huizhong logged net profit of CNY104 million (USD14.5 million) on revenue of CNY496 million (USD69.61 million), according to its latest annual report. Revenue from the smart water meter business accounted for 59.8 percent of total revenue, sales in overseas markets accounted for 7.7 percent.

Editor: Kim Taylor