JX Luxventure Limited (NASDAQ: LLL) holds the most exciting tale from this morning, given the extraordinary growth spurt it saw. In a matter of hardly a half-hour, LLL ballooned from a $2 stock to a $6 stock in the current market session. This jump up by 200%, followed by a stable trajectory brings glee to LLL investors, and adds to the observed market frenzy. In fact, the stock has reached a height which has been unsurpassed in over four years of its trade tenure. The China-based service provider struck a figurative goldmine this morning with an announcement of a mammoth sales deal it signed.
LLL’s Subsidiary Signs Monumental Sales Deal
The company announced the breakthrough early this morning, involving its subsidiary, JX Hainan , specializing in pet food. Chongqing E-Pet Technologies signed a sales deal with the company, committing to pet food purchases of up to $60 million. A sales figure of this magnitude is sure to lead to heavy revenue growth for the company this year, with positive impacts on the LLL trajectory. The deal further enhances the company’s liquidity position, which is subject to the terms of the transaction agreed upon by both parties.
The market widely took the deal as a positive sign for LLL’s growth prospects, as it could reinvest profit into growth and expansion. The deal further enhances the product’s brand value, as it communicates the demand it holds, on the basis of its quality. A $60 million deal involves rigorous product testing and quality checks. Its successful closing gives the brand substantial competitive edge within the market, driving market participants to get hold of LLL.
Broader Factors Contributing to the LLL Surge
Last week, Chinese stocks in general experienced a growth wave, following a positive announcement by China’s State Council. During this growth wave, LLL climbed 17.8%, which contributes to the price it is currently being traded at. Furthermore, the pet food sector in China is one that is readily growing. With impending lockdowns seeing imposition across the country, pet ownership is likely to see surging growth.
LLL has gone through a massive growth spurt today, more than tripling its trade price. This links to the announcement of a mammoth sales deal amounting to $60 million. The news then went on to contribute towards a wider frenzy surrounding the stock.