Highway Holdings Limited (Nasdaq:HIHO) shares vaulted 38.6% to $4.13, after the company reported net income for fiscal year 2011 climbed sharply to $1.7 million, or $0.44 per diluted share, from $420,000, or $0.11 per diluted share, in fiscal 2010. Volume for the stock totaled 261,123 shares, trouncing an all-day average of just over 4,600.

“Results for fiscal 2011 reflect a strongly improved business environment and the benefits of streamlining operations to enhance operating efficiencies,” according to CEO Roland Kohl, who in the June 29 press release, highlighted the two key strategic initiatives implemented during the past few years that have greatly enhance profitability; reducing the company’s operations from four factories to one, and the utilization of automation in its manufacturing process.

“As a consequence, the company was able to further improve its balance sheet and increase its cash position to take advantage of future strategic growth opportunities,” Kohl said.

Gross profits improved for both the fiscal 2011 fourth quarter and year — increasing by $367,000, or 26.16%, and $1,853,000, or 39.4%, respectively, compared with the same periods in fiscal 2010. Gross profit as a percentage of net sales remained essentially unchanged at approximately 21% percent for the fiscal year, despite initiatives noted above to reduce the company’s manufacturing expenses.

Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers — from simple parts and components to sub-assemblies and finished products. Highway Holdings’ administrative offices are located in Hong Kong, and its manufacturing facilities are located in Shenzhen in the People’s Republic of China.