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I am holding, but not by choice. I had a sell order in for $10.52, (placed on May 21st) but it fell short. Too bad.
Deep Sigh,
JP
$0 haha. I'm still holding strong. Yourself?
unfortunately the stock has dropped 5 to 7% every day since you predicted the nice price. How about picking a low?
JP
Share Price Estimate:
Simple estimate, I just took 1Q data and assumed quarterly revenue would increase the same % as they did last year (~15% QOQ)
That gives for 2010 (in millions)
1Q - 34.1
2Q - 40.2
3Q - 46.6
4Q - 54.2
________________
175.1 in revenue
10%-ish margins
Bottom line of 17.5 million.
eps of $0.9 using the 19.3 million O/S given on yahoo. I haven't looked into fully diluted.
That would represent bottom line growth of about 30%. Hoping for a P/E of about half that(maybe 2/3). I think a P/E equal to growth rate is asking for too much here because who knows right now if they can sustain 30% growth over a longer term. That puts their stock between $13.5 (p/e 15) and $18 (p/e 20). Yahoo's target is right in the middle. Either way, I think this is undervalued. If you use the average P/E of the industry which is 10.9 we are about fairly valued. But, if they really start expanding into India, then I think we could see some serious growth making a 10.9 P/E ridiculously low.
Any one elses opinions are appreciated.
Looking at their 10-Q, does the fact that they are unaudited worry anyone? Or should this be looked past here?
Also, with regards to this statement "The High-Tech Enterprise certificate is valid for three years and provides for a reduced tax rate of 15% for years 2009 through 2011. So, the effective income tax rate will be 15% for years 2009 through 2011" is it inclusive? Does that mean the reduced tax rate will still be in effect until Jan 1 2012?
Their new forcast for Q2 represents a 58% increase over Q2 from last year. Basically what it looks like is that so far 1Q earnings this year equal 2q earnings from last year, 2q this year equal 3Q last year. If this trend continues we can expect 5+ million in quarter 3 and possibly 7.5 million (might be generous) in Q4(all rough estimates). That gives a ~20.5 million bottom line for 2010 or 1.08 pps(assuming same number O/S). A p/e of 15, which I think would be fair considering its YOY growth from 2009 to 2010 would be 45% would give you $16 pps.
I'll try to revise this if they give further guidance on the conference call. Any add-ons to this would be appreciated!
Agreed. I have learned not to watch the day to day price movement too much. This was great news today and it's DOWN! Irrationality and things that make no sense when a company is doing well = time to buy more.
I am loving these higher margin products, and to top it off, someone mentioned ( a while ago, I don't remember who) that they may crack the retail market. That will bring in even more revenue. I'm interested to see what they say on the CC
Actually, I am betting (literally by buying more shares) that any lost ground today will be made up next week. MMs will play with it today to try to gain shares.
Key here is to buy and not sell.
JP
We've seen this before. This is one stock that I can never figure out. The PPS movement is just so unpredictable.
Unfortunately................
Despite great earnings............
Despite depressed price...........
pre-market is DOWN!
EXTENDED HOURS:
Last: 9.80 Change: -0.31 (-3.07%) Bid: 9.80 x200 Ask: 9.90 x200
SORL Auto Parts Reports 68.5% Increase in Revenue and 234.1% Increase in Net Income for the 2010 First Quarter
Companies:SORL Auto Parts, Inc. Topics:Earnings
Press Release Source: SORL Auto Parts, Inc. On Friday May 14, 2010, 6:00 am
ZHEJIANG, China, May 14 /PRNewswire-Asia-FirstCall/ -- SORL Auto Parts, Inc. (Nasdaq:SORL - News) ("SORL" or "The Company"), a leading manufacturer and distributor of commercial vehicle air brake systems as well as related auto parts in China, announced financial results for the first quarter ended March 31, 2010.
First Quarter Financial Highlights -- Revenues rose 68.5% year-over-year; -- OEM sales rose 108.7% year-over-year; -- Gross margin was 28.3%, up from 27.2% in the first quarter of 2009; -- Net income rose 234.1% year-over-year; -- EPS $0.17 versus $0.05 in the corresponding period in 2009.
Mr. Xiaoping Zhang, SORL Auto Parts' Chief Executive Officer and Chairman, stated, "We are very pleased with our financial performance in the first quarter of 2010. Higher transportation needs for supplies and resources due to rapid urban expansion in interior mainland China caused surging demand for trucks in the first quarter. While commercial vehicle OEMs are ramping up production as they are reaching the limits of their current capacities, they keep auto parts suppliers, especially safety-related components and system producers, on a tight production schedule. We have carefully increased our production and continue to focus on quality assurance. As the truck replacement cycle approaches, under stricter government emission control measures, we also introduced a series of new products into the marketplace. These new products feature new functionalities, not only targeted at fuel-efficiency-conscious customers, but to strengthen driver safety and comfort. As a result of our product mix shift toward high-value-added products, our margin improved."
Financial Performance
For the first quarter of 2010, net sales were $34.1 million, a 68.5% increase compared to $20.2 million for the same period of 2009. Revenues from the Company's domestic OEM customers were $19.2 million, a 108.7% increase over the first quarter of 2009. Revenues from China's domestic aftermarket were $6.4 million compared with $6.5 million the previous year. Revenues from international markets were $8.5 million, an 84.8% increase from the same period in 2009. The increase in sales was primarily due to the continued development of China's automotive industry, the positive affects of the Chinese's government's 4 trillion RMB stimulus package and the recovery of global economy. Customers' exhibited confidence in economic growth for 2010. Further, the Company promoted its integrated system and modular supplies of air brake systems to OEM customers, and increasingly focused on the light-duty, bus and agricultural vehicle markets.
Quarterly gross profit increased 75.0% to $9.6 million, up from $5.5 million a year ago. Gross margin increased to 28.3% from 27.2%. The gross margin increase was primarily the result of enhanced production efficiencies, improving production technologies, and a favorable shift in product mix. The Company expects the continued sales expansion of higher-profit, new products to help maintain or increase the Company's gross profit margins.
Operating expenses increased 37% to $5.7 million for the first quarter of 2010 from $4.1 million for the same period of 2009. As a percentage of revenue, operating expenses decreased to 16.6% in the first quarter 2010 from 20.4% in the first quarter of 2009 mainly due to increased expenses offset by higher sales.
Selling and distribution expenses were $2.0 million, or 5.8% of quarterly revenue compared with $1.3 million, or 6.5% in the same quarter of 2009. General and administrative (G&A) expenses in the first quarter were $2.3 million, or 6.7% of revenue compared with $2.0 million, or 10.0% in the previous year's quarter. Research and development (R&D) expenses were $1.3 million, or 3.9% of revenue compared with $0.8 million, or 3.8% at the end of March in 2009.
Operating income increased 190.0% to $4.0 million for the first quarter 2010 from $1.4 million for the same quarter last year. Operating margin increased to 11.7% for the first quarter 2010 from 6.8% in the first quarter of 2009 primarily as a result of higher sales and gross margin with effective cost controls.
Net income attributable to stockholders for the first quarter of 2010 increased 234.1% to $3.2 million, or $0.17 per basic and diluted share, from $0.94 million, or $0.05 per basic and diluted share, in the first quarter of 2009.
As of March 31, 2010, the Company had cash and cash equivalents of $18.6 million as compared to $10.3 million on December 31 2009. Total shareholders' equity increased to $115.7 million at the end of March 2010 compared with $91.2 million at December 31, 2009. Net cash flow from operating activities was $1.1 million.
Recent Developments
SORL Auto Parts (Ruili Group Ruian Auto Parts Co., Ltd.) signed a strategic supply agreement with Shandong KAMA Automobile Manufacturing Co., Ltd. ("Shandong KAMA"), to provide clutch boosters, clutch master cylinders and other air brake systems-related products. Based on current expectations, SORL believes its products will account for as much as 80% of the total products in those categories used by KAMA.
In addition, SORL Auto Parts has been selected as a key supplier by the Shandong Wuzheng Group. SORL estimates its products supplied to Wuzheng Group will reach 20 million RMB in 2010, doubling the amount in 2009.
Business outlook
For the second quarter of fiscal year 2010, management is expecting net sales to be approximately $47.0 million and net income to be approximately $4.3 million, compared with net sales of $29.7 million and net income of $3.0 million for 2009 second quarter. These targets are based on the Company's current views on the operating and market conditions, which are subject to change.
Mr Zhang commented, "We will continue with our strategy to focus on high- value-added products for the OEM market in China. In the meantime, we are gradually increasing our penetration into international markets. We are focused on emerging markets and also developed markets such as Europe as well."
"The ongoing and increasing occurrence of severe weather conditions in China increased truck uses, and domestic trucks demonstrated their solid ability to adapt to difficult road conditions with accessibility to replacement parts in many parts of China. SORL's extensive sales and service network throughout the country are well positioned to provide many truck drivers with our brake products in a timely fashion."
"We will continue to invest in new product development, particularly in upgrading traditional valve products and in developing electronically controlled products, to promote our integrated system and modular supplies of air brake systems to our OEM customers. The growth potential of the light-duty, bus and agricultural vehicle markets are increasing our focus to these areas in 2010. We are confident that these efforts will help us continue to improve our competitiveness and financial performance in the future," Mr. Zhang concluded.
Conference Call
Management will host a conference call at 8:00 am EDT, on Friday, May 14, 2010 to discuss its first quarter 2010 financial results. Listeners may access the call by dialing # 1-877-407-0778 or # 1-201-689-8565 for international callers. A live web cast of the conference call will also be available at http://www.sorl.cn .
A replay of the call will be available shortly following the conclusion of the earnings call through May 21, 2010. Listeners may access the replay by dialing # 1-877-660-6853 or # 1-201-612-7415 for international callers; account: 286; conference ID: 350399.
One can assume to announce earnings?
JP
Conference call may 14 before market open
Follow on article; mentions SORL, but features CAAS.
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532111
Chad
Yeah, I try not to worry about it. It obviously has upside potential; it will get there eventually.
I really hope they enter the retail automotive sector. That'll provide continued growth going forward. I still can't seem to figure out the price movements of this stock, so I think I'll just stay patient.
nice article; thanks for posting.
JP
SORL announced earnings this time last year on May 13, so your May 10 date is probably pretty close.
$15 price target
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=531990
After looking into it, I think the 10th really is just a guess. E-trade has 4 of my stocks reporting on this date...I find that would be a strange coincidence.
No real solid idea. I guess it is possible that the MMs held it down for two weeks to gain shares and now they have cut it loose. We do have earnings in a couple of weeks, so maybe that is what is driving it.
I wish I knew.
JP
Any thoughts on the catalyst? Man am I glad I removed my sell order!!
More trades at 8:45
EXTENDED HOURS:
Last: 11.44 Change: +0.57 (+5.24%) Bid: 11.25 x1,000 Ask: 11.44 x600
Continuing rise 4-26-2010
Before the open trading
EXTENDED HOURS:
Last: 11.20 Change: +0.33 (+3.04%) Bid: 11.10 x400 Ask: 11.75 x200
totally amazing
JP
EXTENDED HOURS:
Last: 11.00 Change: +0.13 (+1.20%) Bid: 10.61 x300 Ask: 11.27 x300
I'm guessing this had a little to do with today, but I'm not convinced it's the whole story. This is one stock that I can't get my head around. I also removed some sell bids.
http://finance.yahoo.com/news/Buffetts-BYD-Bet-Eyed-Ahead-indie-2059369651.html?x=0&.v=2
I hear you on taking some profit; in fact, that was my plan yesterday and today.
However, maybe we should wait and see if this pushes $12.
Look at what happened in January of this year over a 7 day period, beginning on January 8th, which was a Friday. January 11 had volume similar to today, and then boom on the 12th, a Tuesday
Jan 15, 2010 12.30 12.30 11.48 11.65 279,800 11.65
Jan 14, 2010 12.30 12.50 12.00 12.12 222,200 12.12
Jan 13, 2010 12.40 12.79 11.00 12.16 698,200 12.16
Jan 12, 2010 11.05 12.89 10.96 12.81 1,172,000 12.81
Jan 11, 2010 11.00 11.20 10.62 10.92 575,300 10.92
Jan 8, 2010 10.39 10.41 10.16 10.31 197,600 10.31
So, should you look to sell next week around 12, or if the pattern repeats itself, is 13 or 14 a possibility?
Note: some have targeted this stock at $18.
Have a nice weekend.
JP
According to Etrade, yes they are May 10th. But I have noticed that date is not alway right. Anyways, look at today between 2:30 and 4. What happened? It went up 6% in an hour and a half. I mean I'm not complaining...but it seemed to come out of no where. I should probably take a little off the table, but I just think this has too much upside still. What I'd like to hear is some more info about their expansion into india, as I think this would be a good market to crack. Hopefully they do this without a secondary, but chinese stocks offer them far too often...Hopefully they can put their $2 million they already have in cash to good use.
Over the past two days I have posted and then withdrew sell orders at 10, 10.50, and 10.75. I put the sell order at 10.75 at 3:30 and nearly had it gobbled up before I could withdraw it at 3:33.
What is up with this stock?
I don't believe earnings are until May 10.
JP
I don't know. I'm looking down from so high up I can't see it anymore! ;). Explosive day! Exactly the reason I'm not a chartist.
Pickin: where is the resistance now?
JP
so, are we breaking through this resistance today?
Looks very strong.
JP
Looks like 10.40-10.50 range is going to be new resistance
E-mail from IR, not much insight
My email:
As per the recent PR, it states that the contract with Shandong Wuzheng SORL was for 20 million RMB or about 2.93 million USD. It also says that Shandong Wuzheng is expecting 60,000 trucks in 2010. I don’t know how many of these trucks will be distributed with SORL parts, but if it was, say, 80% of them like they expect with Shandong KAMA, that’s 48,000 trucks. With a 2.93 million dollar contract, that equals about 61 USD per truck(2.93 million/48,000 trucks). Is this reasonable for a truck company? I know I just had a bearing replaced in my car and that part alone was a couple hundred dollars. Maybe if I better understand how they determine these contract costs, I can better understand the value they are getting out of this.
IR Response:
It is difficult to compare prices and costs in the US versus China. SORL does not provide a per unit breakdown of prices or costs, and each contract might be different.
disappointing finish today. Big volume and only a 2 cent increase. The MMs must have a bunch of shares to sell.
JP
Lucky for you, I have this previous e-mail from IR, as I asked a similar question a couple of weeks ago. While it's not great english haha, it gives an idea. I just can't tell if its $400 per part, so $4000 per vehicle, or 10 parts for $400 averaging 40 dollars a part.
Ignore my last post. I totally missed the following line from the article.
In addition, SORL Auto Parts has been selected as a key supplier by the Shandong Wuzheng Group. SORL estimates its products supplied to Wuzheng Group will reach 20 million RMB in 2010, doubling the amount in 2009.
I don't think there's enough information in the article to calculate expected revenue. I was thinking along the same lines, but we'd need to know the number of components/vehicle and revenue/component in order to do any type of estimate. I suppose if we could determine average revenue/component for SORL parts in general, you could start to swag a range by assuming x components per truck.
Maybe you can explain this better, but looking at this, it is saying that most vehicles supplied by Shandong KAMA are trucks. So lets assume 90%. That means in 2010 that will be .9*150,000. Then if SORL takes 80% of that, thats 108,000 trucks. Now I'm not sure how many of the 300,000 3-wheeled vehicles produced by Shandong Wuzheng SORL will touch, but assume they will touch all the 60,000 trucks and that will get them 20 million RMB or about 2.93 million USD. How does this make sense? That's an average revenue of about $50 per vehicle (2,930,000/60,000). I'm trying to get the average cost per vehicle so I can determine the revenue that SORL will generate for the 108,000 trucks that will come from Shandng Kama
Very good. Thanks for posting.
JP
ZHEJIANG, China, April 7 /PRNewswire-Asia-FirstCall/ -- SORL Auto Parts, Inc. (Nasdaq:SORL - News)("SORL" or "The Company"), a leading manufacturer and distributor of commercial vehicle air brake systems as well as related auto parts in China, today announced new contract awards in the agricultural and light vehicle markets.
SORL Auto Parts (Ruili Group Ruian Auto Parts Co., Ltd.) signed a strategic supply agreement with Shandong KAMA Automobile Manufacturing Co., Ltd. ("Shandong KAMA"), to provide clutch boosters, clutch master cylinders and other air brake systems-related products. Based on current expectations, SORL believes its products will account for as much as 80% of the total products in those categories used by KAMA.
Shandong KAMA Automobile Manufacturing Co., Ltd. is one of China's industrial giants. With over 300 sales and service stations nationwide, Shandong KAMA also exports its products to over 40 foreign countries including France, Pakistan, South Africa, and the U.K. Shandong KAMA's products include micro-trucks, light-trucks, medium-trucks, and heavy-trucks and agricultural vehicles. Shandong KAMA has estimated its annual production will be 150,000 vehicles in 2010 and 200,000 units in 2011, with micro-truck, light-truck and agriculture vehicles comprising the majority of the products.
In addition, SORL Auto Parts has been selected as a key supplier by the Shandong Wuzheng Group. SORL estimates its products supplied to Wuzheng Group will reach 20 million RMB in 2010, doubling the amount in 2009.
Shandong Wuzheng Group is a leading domestic manufacturer in the agricultural and light-truck vehicle sectors. Wuzheng carries over 1,000 types of products. Its main products include three-wheeled vehicles, agricultural machinery, electric cars, auto parts, etc. Wuzheng's trademark has received the "Famous Trademark of China" from the State Administration for Industry & Commerce of the People's Republic of China (SAIC). The Aochi truck was the sole recipient of the "2010 China Light-Truck Annual Award". Shandong Wuzheng has estimated its annual production of three-wheel vehicles for 2010 to be 300,000 units, with micro-trucks, light-trucks and medium-trucks exceeding 60,000 units. Shandong Wuzheng has been recognized as one of the most promising enterprises in China's machinery industry.
Mr. Baojian Tao, SORL Auto Parts' Chief Operating Officer, commented, "Our supply contract with Shandong KAMA is a good starting point. In the future, we plan on achieving whole-vehicle supply of the air brake systems and related products, and eventually become their exclusive supplier. In 2009, SORL's supply to Wuzheng Group substantially improved. This new contract serves as a testament to the quality and technology of our products, and demonstrates the tremendous growth potential we have in China's agriculture vehicle market."
SORL Auto Parts, Inc.
As China's leading manufacturer and distributor of automotive air brake systems and other related auto parts. SORL Auto Parts, Inc. ranked No. 1 for market share in the segment for commercial vehicles, such as trucks and buses. The Company distributes products both within China and internationally under the SORL trademark. SORL is listed among the top 100 auto component suppliers in China, with a product range that includes 40 categories with over 1000 specifications in air brake system, air controlling system and others. The Company has four authorized international sales centers in Australia, UAE, India, and the United States. SORL is working to establish a broader global sales network. For more information, please visit http://www.sorl.cn .
Pre-market bid/ask
9.80/9.95
looking good.
JP
If this gets over $12 I'll definitely take some off the table. It even tested around the 12 dollar range when they gave those truck-industry-will-have-30%-growth-in-2010 numbers back in January. That seems to be the top with the earnings they have right now.
Last quarter prices after earnings. Start from the bottom. Are we in for a repeat?
Historical Prices
Date Open High Low Close Volume AdjClose
2010/01/27 11.18 11.25 9.72 10.76 622,196 10.76
2010/01/26 11.66 11.70 11.07 11.25 252,997 11.25
2010/01/25 12.16 12.16 11.33 11.79 241,591 11.79
2010/01/22 12.00 12.15 11.20 11.50 225,483 11.50
2010/01/21 12.41 12.79 11.04 11.77 431,524 11.77
2010/01/20 12.49 12.54 12.06 12.22 290,904 12.22
2010/01/19 12.38 12.79 12.05 12.54 423,051 12.54
2010/01/18 12.30 12.30 11.65 11.65 279,739 11.65
2010/01/15 12.30 12.30 11.48 11.65 279,739 11.65
2010/01/14 12.30 12.50 12.00 12.12 222,104 12.12
2010/01/13 12.40 12.79 11.00 12.16 698,112 12.16
2010/01/12 11.05 12.89 10.96 12.81 1,171,900 12.81
2010/01/11 11.00 11.20 10.62 10.92 575,241 10.92
2010/01/08 10.39 10.41 10.16 10.31 197,303 10.31
2010/01/07 10.14 10.47 10.03 10.27 207,900 10.27
2010/01/06 10.28 10.63 10.10 10.22 318,131 10.22
2010/01/05 9.40 10.29 9.40 10.21 531,745 10.21
JP
Nice to see the MMs walking this back up where it belongs. Still looking for north of 10.
JP
I have been trying to get some sort of future revenue estimates, but without them releasing contract information, thats difficult to do. Not to mention, I haven't gotten a response to some of my questions aboutIndia, so I don't know what kind of market they are looking to expand into. In the short term, I would expect an estimate between $12 and $13 per share is probably fair for 2010. However, their international revenue was down about 15 million in 2009 from 2008. If that comes back up, or increases due to this India expansion, I'd say closer to $15. These estimates are however, probably somewhat liberal. It really is hard to tell. I think 12-13 is what should be expected.
I'm also curious what kind of capacity they are operating at. If their current factories allow them to produce more than they are selling, what kind of revenue could we expect assuming they were operating closer to 100%
http://www.sorl-autoparts.com/disnews.asp?id=MzM3
If you haven't seen the above, it's a quicker read than the 10K. Interesting that they chose to say that they targeted OEM's more in '09, as opposed to protectionist language in the 10K. Reads better if you ask me.
They're guidance for Q1 2010 is
"For the first quarter of fiscal year 2010, the management is expecting net sales to be approximately $30 million and net income to be approximately $2.9 million, compared with $20.2 million and $0.9 million for 2009 first quarter respectively. These targets are based on the Company’s current views on the operating and market conditions, which are subject to change. "
A net income of 2.9M should yield an EPS of about .15-.16. That's probably why the 2010 estimate is .79.
Every little bit helps. Your age just means you have many more years to multiply your gains. Kudos for having the foresight to invest when you're young.
FWIW, this is a smaller holding for me, so I'm not looking to get rich :)
Well, if it makes you feel better, I'm only 23 and am investing with very little money relatively speaking. I got in at 8.00 exactly...but because of that, even if this doubles, I wont get much out of it. You will still be raking in more than me I'm sure haha.
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Earnings: 10Q ~ http://ih.advfn.com/p.php?pid=nmona&cb=1211225670&article=26303686&symbol=N%5ESORL
1Q profit rose 68%
Motley Fools 5 Star Ranking
No 1169 Yumeng Road
Ruian Economic Development Zone
Ruian City,
China - Map
Phone: 86 577 6581 7720
Fax: 86 577 6581 7733
Web Site: http://www.sorl.cn
DETAILS
Index Membership: N/A
Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Full Time Employees: 2,005
Company Overview
SORL Auto Parts, Inc. (the ¡°Registrant¡± or the ¡°Company¡±) is engaged in the business of manufacturing and distributing automotive air brake valves and related components for commercial vehicles weighing more than three tons, such as trucks and buses. The Company distributes products both in China and internationally under the SORL trademarks. The Company¡¯s product range includes 40 categories of brake valves with over 800 different specifications. According to an announcement of National Bureau of Statistics of China and China Association of Automobile Manufacturers (¡°CAAM¡±) in June 2006, the Company ranks among the top 100 automotive component suppliers in China.
SORL Auto Parts, Inc. is the largest commercial vehicle air brake system manufacturer in China. The Company distributes products both in China and internationally under the SORL trademarks. In general, customers are divided into three groups: OEM in China, aftermarket distributors in China, and international customers, accounting for approximately 32%, 28% and 40%, respectively, of the Company¡¯s annual sales for 2006.
For OEM market in China, SORL Auto Parts, sells its products to thirty-nine (39) vehicle manufacturers. The Company has established long term business relationships with most of the major automobile manufacturers in China, such as FAW Qingdao Automobile Works, First Auto Group Purchase Dept. Dongfeng Axle Co.,Ltd., Beiqi Foton Motor Co., Ltd., Zhucheng Automobile Works, Liuzhou Special Auto Manufacturing Co.Ltd.
For the After Market in China, Sorl Auto Parts, Inc. has established a sales networks of twenty-eight authorized distributors covering the following seven regions nationwide. The 28 distributors sell only ¡°SORL¡± products and in turn channel the products through over 800 sub-distributors.
For International Market SORL Auto Parts, Inc. has signed agreements with three distributors in UAE, Australia and the US. It also actively participates in international trade shows at Paris, Frankfurt, Dubai and Las Vegas, to update its knowledge on automobile technology and local market trends and to acquire new customers and new orders. The Joint Venture has sold products to over seventy-two (72) countries. Total Export sales in 2006 increased by 45% compared to that in 2005.
The Company obtained ISO9001/QS9000/VDA6.1 System Certifications in 2001. In 2004, the Joint Venture passed the ISO/TS 16949 System Certification conducted by the TUV CERT Certification Body of TUV Industrie Service GmbH, and passed the annual review in 2005. The ISO/TS 16949 system, a higher standard compared to and the replacement for ISO9001/QS9000/VDA6.1 System, was enacted by the International Automotive Task Force and is recognized by the world¡¯s main automobile makers and ISO 14001/OHSAS18001 Environment/Safety Administration system.
Management
XIAO PING ZHANG - CHAIRMAN OF THE BOARD OF DIRECTORS AND CEO
Xiao Ping Zhang has served as Chief Executive Officer and chairman of the board since our inception. He founded the Ruili Group, a company specializing in a variety of automotive parts and components, in 1987, and has served as chairman of the Ruili Group since then. In 2003, he was elected the President of the Wenzhou Auto Parts Association the largest automotive parts trade association in China with more than 1000 members, and Vice-President of the China Federation of Industry and Commerce Auto and Motorbike Parts Chamber of Commerce. Mr. Zhang is also a member of the Standing Committee of the People¡¯s Congress in Rui¡¯an City, Zhejiang, China. Mr. Zhang graduated from Zhejiang Radio and TV University in 1986 with a major in Industrial Management. He is the brother of Xiao Feng Zhang.
XIAO FENG ZHANG - CHIEF OPERATING OFFICER AND DIRECTOR
Xiao Feng Zhang has served as Chief Operating Officer and a member of the board of directors since our inception. He is responsible for sales and marketing. Mr. Zhang co-founded the Ruili Group with his brother, Mr. Xiao Ping Zhang, in 1987, and served as the General Manager of the Ruili Group until March 2004. Mr. Zhang received his diploma in economics from Shanghai Fudan University in 1994. He is the brother of Xiao Ping Zhang.
SORL Auto Parts Reports 36% Revenue and 40% Net Income Growth for 2007 http://www.sorl.cn/disnews.asp?id=Mjc3
2007 Achievements
In March 2007, SORL announced that it entered into a new sales agreement with India's largest commercial vehicle manufacturer, TATA Motors, to supply air brake valves and related products. In addition, SORL also announced that the Company opened a sales center in India to focus on OEMs and the aftermarket in the Indian market.
In October 2007, SORL announced the purchase of land rights, a manufacturing plant and an office building with a total floor area of 66,177.91 square meters, or 712,333 square feet, from Ruili Group Co. Ltd., for US$20 million. The appraisal of the assets was conducted by the leading independent appraiser, DTZ Debenham Tie Leung Ltd., and total asset value was appraised at US$20.3 million. As a result of this transaction, the acquired capacity expansion is expected to meet the Company's growth demands for the next 2 to 3 years. In addition, SORL purchased approximately US$7 million of advanced equipment to both add capacity and efficiency to its production capabilities.
In October 2007, SORL was also designated as the exclusive air brake parts supplier for the estimated 2,400 new municipal buses the City of Tianjin is purchasing. These new buses are being acquired to both help solve the transport needs of the city's residents and to accommodate the expected larger transportation demands of the nearby Beijing 2008 Olympics. Additionally, the city of Beijing, has also chosen SORL as a designated air brake parts supplier for its municipal bus fleet. Nationally, it is estimated China had over 341,000 municipal buses. Due to their almost nonstop operation, municipal buses require frequent maintenance and the replacement of their brake systems.
In October 2007, SORL announced that it has entered into a technology development agreement with China's second largest heavy-truck maker, Baotou North- Benz Heavy Duty Truck Co. Ltd. With this new agreement, SORL became a major long-term supplier of air brake products to North-Benz.
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