China-based NF Energy Saving Corp. (NASDAQ: NFEC) today announced the signing of an energy service contract in Dongguan, China. The announcement sent NFEC shares sharply higher.
NF Energy Saving, which manufactures large diameter energy efficient flow control systems for a range of industries in China, signed an energy efficiency service contract with Dongguan Xianjia Plastic Products Company. The contract was signed through Liaoning NF Energy, which is NFEC’s wholly-owned subsidiary.
Under the terms of the contract, NFEC will retrofit 58 units of Dongguan Xianjia’s injection molding machines, which will result in energy saving of up to 40%. The contract certainly highlights the increasing demand for energy efficient products and services in China. In the last few years, the Chinese government has also pushed for energy saving products and services. This certainly augurs well for NFEC.
Last week, NF Energy Saving had reported its financial results for the second quarter ended June 30, 2013. For the quarter, the company’s total revenue stood at $1.47 million. For the first six months of 2013, the company’s revenue stood at $2.77 million.
NFEC’s gross profit for the second quarter stood at $0.43 million. For the six-month period ended June 30, 2013, NFEC reported a gross profit of $0.84 million. Net income for the second quarter was $52,017, while for the first half of 2013 it was $61,782.
Earlier this month, NF Energy Saving also announced the establishment of a new subsidiary, NF Energy Corporation Guangdong Subsidiary. The subsidiary has been established in Guangzhou, China. Through the subsidiary, the company is looking to improve the development of its energy saving products and enable it to take advantage of the expanding energy saving industry in China.
Given all these positive developments, it is not surprising that NFEC shares have been significant interests from investors recently. The stock surged 22.63% to finish at $2.33 in trading today after striking a 52-week high of $2.88. NFEC shares have now gained more than 86% in just the last three trading sessions. The stock is nearly 250% in the last one month. Year-to-date, the stock has gained more than 129%.
The gains in the last one month have pushed NFEC shares above their 50-day and 200-day moving averages. This is a strong bullish signal. The stock’s MACD chart further confirms the bullish trend. The MACD is currently trading above the signal line as well as the zero-line. Also, the MACD histogram is indicating increasing upward momentum. Certainly, technical indicators suggest that market sentiment is bullish on the stock at the moment.
While technical indicators point to further gains in NFEC shares in the near-term, the increasing demand for energy saving products and services in China makes NFEC an excellent long-term bet as well. Also, the recent developments at NFEC suggest that the company is well-positioned to capitalize on the increasing demand for energy products and services in China. All these make NFEC a stock to watch in the long-term as well.
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NF Energy Saving, which manufactures large diameter energy efficient flow control systems for a range of industries in China, signed an energy efficiency service contract with Dongguan Xianjia Plastic Products Company. The contract was signed through Liaoning NF Energy, which is NFEC’s wholly-owned subsidiary.
Under the terms of the contract, NFEC will retrofit 58 units of Dongguan Xianjia’s injection molding machines, which will result in energy saving of up to 40%. The contract certainly highlights the increasing demand for energy efficient products and services in China. In the last few years, the Chinese government has also pushed for energy saving products and services. This certainly augurs well for NFEC.
Last week, NF Energy Saving had reported its financial results for the second quarter ended June 30, 2013. For the quarter, the company’s total revenue stood at $1.47 million. For the first six months of 2013, the company’s revenue stood at $2.77 million.
NFEC’s gross profit for the second quarter stood at $0.43 million. For the six-month period ended June 30, 2013, NFEC reported a gross profit of $0.84 million. Net income for the second quarter was $52,017, while for the first half of 2013 it was $61,782.
Earlier this month, NF Energy Saving also announced the establishment of a new subsidiary, NF Energy Corporation Guangdong Subsidiary. The subsidiary has been established in Guangzhou, China. Through the subsidiary, the company is looking to improve the development of its energy saving products and enable it to take advantage of the expanding energy saving industry in China.
Given all these positive developments, it is not surprising that NFEC shares have been significant interests from investors recently. The stock surged 22.63% to finish at $2.33 in trading today after striking a 52-week high of $2.88. NFEC shares have now gained more than 86% in just the last three trading sessions. The stock is nearly 250% in the last one month. Year-to-date, the stock has gained more than 129%.
The gains in the last one month have pushed NFEC shares above their 50-day and 200-day moving averages. This is a strong bullish signal. The stock’s MACD chart further confirms the bullish trend. The MACD is currently trading above the signal line as well as the zero-line. Also, the MACD histogram is indicating increasing upward momentum. Certainly, technical indicators suggest that market sentiment is bullish on the stock at the moment.
While technical indicators point to further gains in NFEC shares in the near-term, the increasing demand for energy saving products and services in China makes NFEC an excellent long-term bet as well. Also, the recent developments at NFEC suggest that the company is well-positioned to capitalize on the increasing demand for energy products and services in China. All these make NFEC a stock to watch in the long-term as well.View to Original post:Click Here
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