China TechFaith Wireless Communication Technology (Nasdaq: CNTF) said today its CEO bought 143,000 American Depository Shares (ADS) in December, increasing his stake in the company to almost 32%.
Defu Dong, who has been CEO since the company’s inception, said, “I believe TechFaith is undervalued. I decided to increase my ownership based on my confidence in the Company's market position and my belief in its continued growth prospects.”
Dong intends to purchase additional ADSs through open market and privately negotiated transactions, the company said.
China TechFaith develops, manufacturers and markets cell phones in China. Its brands includes QIGI for smartphones, and Glomate, a teenager-oriented brand. The company also develops games for mobile devices and computers through its subsidiary 798 Entertainment.
As of 1:20 pm EST, the company’s shares have rallied almost 5% to trade at $4.43.