Fountain Set (HKG:0420) expects to post profit attributable to owners of about HK$30.7 million for the six months ended June 30, compared with a loss of HK$9.9 million a year earlier, according to an Aug.1 Hong Kong bourse filing.

Shares of the textile manufacturer gained over 5% in Monday morning trade.

The anticipated improvement was driven by a combination of higher gross margins, lower procurement and production costs, and tighter expense controls, the company said.

Full interim results will be released later this month.