Beijing CCID-Media Investments Co, a Shenzhen-listed ST share, said it pulled in 1.36 million yuan in net profit attributable to shareholders in 2012, turning round from a 29.90 million yuan loss in 2011, according to the earnings report it released Monday. Analysts quickly pointed to the stronger performance as a chance for the company to shake off its risk warning.
Another three ST companies are expected to issue earnings reports later this week showing a similar turnaround from losses and an improvement in their net assets, potentially paving the way for the removal of their warning marks as well.
Meanwhile, investors also looked favorably on ST companies such as Taifu and Jiamusi which have recently had their asset restructuring plans approved by the China Securities Regulatory Commission. Jiamusi applied to have its ST mark removed Friday after it finished restructuring its assets on January 8.
"Getting rid of the ST warning means that the company's business has improved, and that it will be a better target for investment," Li said.
"In general, the share prices of an ST company will jump quickly if it shows the possibility of having its risk warning sign removed or if it officially has the mark taken off," he explained.
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