(MENAFN- ProactiveInvestors) Group (CAMK) has rallied by around a third on Wednesday despite the repeat of a profit warning due to reduced consumer spending in China.
The Chinese youth clothing and sportswear firm told investors that it is fundamentally undervalued following recent falls in the share price.
Valuing the company solely on its cash balance as at December 31 the AIM quoted shares are worth 57p each the company said.
On AIM shares responded by rising as much as 33% to reach an intraday high of 24.59p.
In the same statement the company repeated a warning that customers requested cancellations and postponement of orders in November causing a 12.5% shortfall to prior market expectations.
The company today said it had been reviewing its planned cost base for 2015 with a view to maintaining net profit as much as possible and it will make further announcements in this regard at an appropriate time.
It also told investors that plans to develop new manufacturing facilities have been put on hold whilst it evaluates potentially cheaper alternatives - such as leasing or purchasing existing facilities.
Previously in September the group bought land for the project which was earmarked for construction in early 2015.
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