Neusoft Rises After Being Named Smart Cockpit Controller Supplier to Another Big Chinese Carmaker
Neusoft's shares rose 3.1% after announcing a six-year contract to supply smart cockpit domain controllers to a major Chinese automaker, expected to generate CNY4.2 billion in revenue. This marks Neusoft's second such deal in two months, with products set for mass production between next year and 2027. Neusoft's intelligent auto business is its largest income source, accounting for 44% of its revenue in the first half of the year.
(Yicai) Nov. 20 -- Shares of Neusoft rose after the Chinese software developer said it became the designated supplier of smart cockpit domain controllers of a well-known Chinese automaker, its second such deal over the past two months.
Neusoft [SHA: 600718] closed 3.1 percent higher at CNY10.54 (USD1.48) a share today. The broader Shanghai stock market fell 0.4 percent.
The six-year contract is expected to generate sales revenue of CNY4.2 billion (USD590 million), Shenyang-based Neusoft announced late yesterday. The client will use the products on multiple new models, with the new cars likely to start mass production and hit the market between next year and 2027, it pointed out.
Smart cockpit domain controllers are the core control unit of vehicles' smart cockpit systems and a key carrier for enhancing their interaction experience and intelligence level.
Neusoft and the carmaker have maintained a long-term alliance, it noted, without disclosing the client's name.
According to its first-half financial report, Neusoft counts Geely Automobile Holdings, Changan Automobile, FAW Group, and Guangzhou Automobile Group among its well-known carmaking customers.
On Sept. 18, Neusoft said it was named the smart cockpit domain controllers supplier to another big Chinese automaker, with the four-year deal expected to bring sales revenue of CNY5.6 billion.
Primarily driven by the mass production of new products, including the smart cockpit domain controllers, Neusoft's intelligent auto business accounted for 44 percent of its income in the six months ended June 30, making it its largest income source.
Editor: Martin Kadiev
