China HGS Real Estate Inc. (HGSH) is a regional real estate developer that engages in the construction and sale of apartments, office buildings, commercial properties, and parking lots. HGSH stock was rising in the premarket as its per-share price saw a jump of 38.33% to reach $2.49 at the time of this writing. There is nothing particular to explain this rise.
HGSH stock is captivating the attention of investors due to gain at the per-share price in the pre-market though there was no company-specific news, no press release, no analyst upgrades, or targeted share price to explain the rally. The stock seemed red at the previous closing with a 3.23% drop per share.
The China HGS Real Estate reported its first-quarter earnings of 2021 on22nd February which reflected an increase in the company’s revenue and net income. The company generated $2.8 million for the first quarter of the fiscal year 2021 with a 19.6% increase as compared to $2.3 million of the same quarter of fiscal year 2020.Net income showed a significant increase in the first quarter of fiscal 2021 as compared to a net loss of $0.3 million in the previous year and reached $0.3 million. Basic and diluted EPS were $0.01 in the first quarter of fiscal 2021.
Back in December 2020, the company established the sales center for the Liangzhou Mansion project. This project is the part of Liangzhou road real estate project. Liangzhou Mansion project comprises 160,000 square meters GFA with 7 tall residential buildings and commercial shops in the downtown of Hanzhong city. The company will begin presales of this project in the upcoming months.
HGSH stock price was rising in the pre-market without any clear reason. This behavior of the stock sometimes spread confusion among short-term investors but usually doesn’t bother long-term investors who mainly eye on overall company’s growth.