NEW YORK (TheStreet) -- Shares of Kingold Jewelry (KGJI) - Get Kingold Jewelry, Inc. Report were jumping 9.76% to $2.25 on heavy trading volume late Monday morning after the company posted strong results for the 2016 second quarter.
After Friday's closing bell, the Chinese designer and manufacturer of 24-karat gold jewelry posted earnings of 30 cents per diluted share. During the same quarter a year ago, the company earned a penny per diluted share.
Revenue for the quarter spiked 56.5% to $390.3 million year-over-year.
Kingold also processed 20.3 metric tons of 24-karat gold products during the period, an increase of 40.1% from 14.5 metric tons last year.
"We were pleased to report strong operating results for the second quarter of 2016, as we have taken advantage of the increasing gold demand in China as well as a quick rebound of gold price," CEO Zhihong Jia said in a statement.
Demand for the precious metal rose 15% during the second quarter compared to a year ago, the World Gold Council said last week. The increase was prompted by investment demand from the West.
The company also reiterated guidance for between 50 and 60 metric tons of 24-karat gold processed during the full year.
About 1.99 million of Kingold's shares were traded so far today vs. its average 30-day volume of 173,319 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, solid stock price performance, increase in net income and growth in earnings per share.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KGJI