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Hot stock: Delong surges 35% on thin volume after higher profit guidance
SHARES of Delong Holdings surged almost 35 per cent on Friday, a day after the Chinese steel company issued a guidance for a "significant increase" in net profit for the third quarter 2016.
Delong shares hit S$0.35 each earlier, up 35 per cent from its close of S$0.26 on Thursday. They were hovering around S$0.31 each, up five Singapore cents, or 19 per cent, by 2.53pm. Volume was albeit light, with only 19,000 shares traded.
On Thursday, Delong said that its Q3 net profit would see a "significant increase" compared with a year ago. This was mainly due to an increase in sales volume and average selling prices of products sold amid tighter supplies following production cuts in China last year. Restocking by customers also boosted demand.
It expects to unveil the Q3 results on Nov 8, 2016.