(Yicai Global) Nov. 4 -- Hunan Oil Pump watched its shares surge almost 7 percent this morning after the auto parts supplier announced it has secured two exclusive supply deals that could yield as much as CNY114 million (USD17 million) in revenue a year.

The firm's stock [SHA:603319] closed up 6.96 percent at CNY37.63 (USD5.63) at noon.

The central China-based company is set to develop and mass produce oil pump products for Chinese auto giant Geely Auto Group’s new model, which is expected to launch in the global market in next year’s fourth quarter. The value of the deal is estimated at up to CNY480 million over its expected five-year term.

The company also wrung out an exclusive supply deal from Naveco, a commercial vehicle joint venture of China’s Nanjing Automobile and Italy’s Iveco, to supply assembly products for oil and vacuum pumps for Naveco’s new model, which is set to launch in the domestic market in May.

The Naveco agreement is expected to bring in CNY18 million revenue annually for Hunan Oil Pump, the announcement added. This will make the firm the first domestic one to mass produce such a product in China.

Editor: Ben Armour, Xiao Yi