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China Techfaith Wireless Up Over 40% Today After Reporting Unaudited Financial Results

Jeff WilliamsJeff Williams ·

China Techfaith Wireless Comm. Tech. Ltd (NASDAQ:CNTF) shares ended the day up over 40% after it announced its unaudited second half and full year 2016 financial results. Moreover, the company announced its agreement to sell some certain Beijing real estate assets for approximately $144M. Let’s move right into the company’s unaudited financial results.

CNTF Unaudited 2H and FY 2016 Financial Results

During the second half of the 2016 fiscal year, TechFaith reported total net revenues of $26.5, $15.8 million in the second half of 2015. CNTF reported a gross profit $7.0M for the second half of 2016, compared to a gross profit of $1.2M in second half of 2015. Additionally, it reported a net income attributed to TechFaith  of $11.3 million, or US$1.07 per basic and diluted weighted average outstanding ADS. The company grew its net income and EPS significantly, when compared to its net loss of $1.2M, or $(0.11) per basic and diluted weighted average outstanding ADS, during  the first half of 2016.

For the full year ended in December 2016, CNTF reported a gross profit of $12.5M, compared to $5.8M, for the full year 2015. The company reported a net income of $10.1M for full year 2016, compared to a net loss of $12.8M in the 2015 fiscal year.

CNTF Statistics and Valuation

The stock traded between  $2.63 and $3.45  today. CNTF traded between  $1.45  and  $4.29 , over the past 52 weeks. Consequently, CNTF is  currently just over 34% below its 52-week high and over 100% above its 52-week low. CNTF broke above its 20-, 50- and 200-day SMA, indicating a reversal of trend.

Here’s a look at the stock’s performance on the daily chart:

Source: TradingView

China Techfaith Wireless Communication Technology Limited currently has a book value per share of 24.5, and therefore, CNTF has a price to book ratio (P/B) of 0.11, which is well below its industry average of 2.1. The stock also has a trailing 12-month price-to-sales ratio (P/S) of approximately 0.4. CNTF has 7.06M shares floating, 10.6 million shares outstanding, and a short ratio of 0.55%. Keep in mind CNTF has a low float, and we could see more extreme moves in the name.

Final Thoughts

China Techfaith Wireless announced its unaudited second half and full year 2016 financial statements. The company showed some positive growth in some of its income statement items, and this catalyst caused the stock to breakout of its recent downtrend.

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