STOCKS | Shenzhen Huaqiang Says It Will Benefit From Industry-Wide Inflation

Shenzhen Huaqiang said it is positioned in an indispensable midstream segment of the industry and expects to benefit from overall industry inflation. According to Jin10, the company said during a recent institutional survey that, as a domestic electronic components distributor, it sits in a key intermediate link in the industrial chain. The company said that during an upturn in industry conditions, rising customer demand for components would lift its shipment volumes. It added that higher component prices would further increase the total value of shipments, which it described as its business scale. Shenzhen Huaqiang also said that when both volume and prices rise, the gross margin level of its distribution business is expected to improve in tandem.