Roth Capital Partners initiated coverage on Chinese information technology solutions and service provider Yucheng Technologies (YTEC) 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 (CAAS), 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 (KKUN), which rose 8.7% to $2.88; Yanzhou Coal Mining (YZC), which advanced 6% to $93.01; China Natural Resources (CHNR), which added 5.9% to $17.54; and NetEase.com (NTES), 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.