(Yicai Global) Jan. 30 -- Hangke Technology’s shares soared after the Chinese power battery equipment supplier said it expects profit to have climbed by as much as 134 percent last year and said it has won a USD146 million order from BlueOval SK, the joint venture of Ford Motor and South Korean power battery maker SK On.

After surging almost 12 percent in the morning, Hangke [SHA: 688006] ended 5.7 percent higher at CNY50.11 (USD7.42) a share. China’s stock markets reopened for trading today after the Chinese New Year holiday.

Net profit likely surged 91 percent to 134 percent to between CNY450 million and CNY550 million (USD66.6 million and USD81.4 million) in 2022 thanks to new orders as demand in the new energy market climbs, Hangzhou-based Hangke said on Jan. 21, the first day of the holiday.

On the same day, the company also revealed a USD146 million deal in which unit Hong Kong Hangke Electronics Trading will provide charging-discharging machines, fixture machines, and other equipment for the post-processing of lithium-ion batteries to BlueOval SK.

The deal will help widen the use of Hangke's products in international new energy battery production plants, especially in the US market, as well as lift the firm’s earnings, Hangke added.

Ford and SK On founded BlueOval SK in July 2021 with an investment of KRW5.1 trillion (USD4.2 billion) each. The JV intends to build a battery plant in Tennessee and two in Kentucky, with the Tennessee factory expected to include Ford's electric vehicle production lines, according to plans announced in September 2021.

Editor: Futura Costaglione