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NF Energy Saving Corp. Shares Jump on New Plastics Contract (NFEC)

Graph With Stacks Of CoinsThanks to news of an energy efficiency service contract signed with Dongguan Xianjia Plastic Products Company to retrofit 58 units of the client’s injection molding machines, shares of NF Energy Saving Corp. (NADSAQ: NFEC) spiked today more than 25 percent in late morning trading on Wall Street.

According to a company press release, the project, when completed, will save Dongguan up to 40 percent in energy costs.

In addition to the Dongguan Plastics contract, NF Energy has contracted to provide energy service to Xinhao Mold Plastic Ltd. on more than 60 units of that company’s IMM equipment.

NF Energy Saving Corp. anticipates these contracts will provide an entry point for additional projects in the plastics industry, and become a significant new revenue source for the company.

NF Energy Saving is based in China and, according to the company, serves as an integrated energy conservation solutions provider. Most of the company’s customer base comes from the electric power generation, hydroelectric power, water supply, and heat supply industries.

Tuesday’s market results follow 2013 First Quarter results released Aug. 14 in which the company reported total revenue of $1.47 million and $2.77 million for the three and six month periods ending June 20, 2013, respectively.

Gross profit reported was $0.43 million and $0.84 on net income of $52,017 and $61,782 for the same three and six month periods.

[stock-tools exchange="NASDAQ" symbol="NFEC" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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