Wireless tech provider Enice jumps 10pc on China deal

Good news ... Enice's shares jump 10 per cent on China telco deal. Picture: Getty

Communications provider Enice Holding Company jumped 10 per cent yesterday after winning a contract with China Mobile Group to provide distributed antenna systems.

Enice (ASX:ENC) said it won 11.6 per cent of the telco’s total procurement needs from 2017 to 2019, or about 3.7 million antennas.

Enice’s shares bounced 10 per cent on the news to 21c, valuing the holding company at $54.5 million.

Enice (ASX:ENC) — which sells wireless telecommunications systems largely to Chinese telcos — is a curious business.

It listed on the ASX in 2015, launching with a China Mobile Group contract. That contract was worth 17.1 per cent of the tender, which it said was worth RMB40 million (at the time worth $8.5 million).

In August Enice posted a half-year loss of almost RMB12 million ($23 million). Enice promised a better second half, largely blaming the loss on delays and new projects that would pay off in the second half of 2017, and R&D spending.