Roth Capital Partners initiated coverage on Chinese information technology solutions and service provider
with a buy rating and a $19 price target citing strong spending trends from top-tier Chinese banks as the Olympics approach. Roth analyst Kun Tao also raised his second-quarter sales forecast by $8.5 million to $24.5 million but lowered his gross margin forecast to 29% from 37.5%. Shares of Yucheng dropped 4.2% to $11.19.
China Automotive Systems
, a Chinese supplier of power steering systems and components, announced it expects to report a significant jump in second-quarter profits due to a strong showing for all of its business segments. The company said it expects to report second-quarter profits of 18 cents to 22 cents per share, vs. 10 cents per share from a year earlier. Revenues are expected to come in above $52 million, vs. $36 million from a year ago. Shares of China Automotive Systems surged 6% to $5.86.
Among the strong movers to the upside for Chinese ADRs and China-based stocks were
China Shenghuo Pharmaceutical
, which rose 8.7% to $2.88;
Yanzhou Coal Mining
, which advanced 6% to $93.01;
China Natural Resources
, which added 5.9% to $17.54; and
, which traded up 5.3% to $21.79.
Be sure to check out the
Far East Portfolio
at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.