Corporate Webpages Wonder Auto Technology Inc.
We can see American companies like General Motors heading over
to China to buy original equipment parts. But frankly, we are a
little surprised to see Mitsubishi Motors, Hyndai, Kia, Fiat,
and Volkswagen doing so as well. China is fast becoming a
leading auto parts manufacturer. Wonder Auto Technology (WATG)
is a Jinzhou-based company that specializes in alternators and
starter motors for automobiles, together comprising most of its
revenues with 220 different models of these things, and also
supplying rods, shafts, and engine valves.
China is increasingly the place where American investors are
heading to get the best deals on financial ratios when
purchasing stock. The Chinese seem much better able to manage
debt than American companies. NASDAQ and NYSE listings are increasingly
getting full of foreign-based companies, particularly ones from
China where economic growth leads the world. We formerly
shunned foreign stocks because of more lax reporting
requirements, but most Chinese companies seem to desire to meet
American-based company reporting standards.
Most of Wonder's revenues come from sales to original equipment
manufacturers operating in China. As one American executive put
it, if you want to succeed in business in China, find a Chinese partner!
One caveat we would suggest is that most of the company's sales
are to Chery Automobile and BYD auto, two Chinese automobile
manufacturers whose sales are booming in the world's biggest
automobile market. A "Buy Chinese Act" in China assures that at
least 50% of government vehicles will be domestic brands.
Chery, Dongfeng Motor, and Shanghai Automotive Industry Corp.
are all planning to launch pure electric cars.
As yet Chery is only gearing up to sell its cars in the U.S. A
visit to Chery's website reveals very slow, ineffective servers,
at least as reached from this country. But Wonder is set to
cash in not only on Chery's expansion, but on its already
impressive list of U.S., European, and Japanese-based customers.
The company has a somewhat marginal Zenith Index mostly because
it hasn't been around long enough to develop a five-year track
record. But both of our favorite researchers like the company,
while many American sites such as Standard & Poor's have yet to
catch up to the trend to deal in large-volume Chinese stocks.
This is where the growth really is in the global economy, and
practically all American financial advisors now seem to declare
that a healthy chunk of Chinese stocks in one's portfolio would
be a prudent diversification. Compared to foreign auto makers,
the American automobile industry appears to be on a fast track
to nowhere, led by General Motors, the official "bailout"
company now being semi-managed by government.
01-14-2010: Wonder Auto Technology Inc. (WATG): China Again
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
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Financial Statements
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Scout Stock Rating
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Research Reports
Analysts' Opinions
Insider Activity
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Sentiment
Short Interest
Stock Report
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Moving Average Chart
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Company Profile |
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Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Wonder Auto Technology, Inc. (WATG ) Sector: Consumer Goods
No 16 Yulu Street Industry: Auto Parts
Taihe District Exchange: Nasdaq
Jinzhou, China
Wonder Auto Technology, Inc., through its subsidiaries, engages in
the business of designing, developing, manufacturing, and selling
automotive electrical parts in China. It offers alternators,
starters, engine valves, tappets, rods, shafts, rectifiers,
regulator products, engine valves, and tappets. Wonder Auto
Technology-Ęs products are used in passenger cars and commercial
vehicles. The company sells its products to automakers, engine
manufacturers, and auto parts suppliers in China. Wonder Auto
Technology, Inc. is headquartered in Jinzhou, China.
Last Trade: 12.98 52-Week Range: 15.78 - 2.04
Trade Date: 01-11 Avg. Volume: 671,962 Shares
Index Membership: N/A Employees: 2,698
Corporate Governance:
Wonder Auto Technology, Inc.'s Corporate Governance Quotient (CGQ-«)
as of 3-Jan-10 is better than 47.6% of Russell 3000 companies and
53.8% of Automobiles & Components companies.
EPS: 0.76 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 349,930K
Payout Ratio: 0.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 405,960K Revenue (ttm) : $ 182,740K
Gross Profit: $ 36,440K
Earnings before Income Tax, Depreciation and Amortization: $ 32,250K
Enterprise Value/Revenue (ttm): 2.22 Revenue per Share: $ 6.78
Enterprise Value/EBITDA (ttm): 12.59 Qtrly Rev Growth (y to y): 50.20%
P/E Ratio (fwd projected): 13.66 P/E Ratio (current): 17.19
P/E Growth Ratio (5 yr expected): 0.88 Operating Margin: 14.30%
Price/Sales Ratio: 1.94 Profit Margin: 11.14%
Price/Book Value: 3.03 Book Value: $ 4.34/sh.
Return on Assets: 7.13% Net Income Avl to Common: $ 20,360K
Return on Equity: 18.94% Diluted Earnings/Share: $ 0.76
Qrtly Earnings Growth (yoy): 2.40%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 21,420K Operating Cash Flow:$ 17,120K
Total Debt: $ 72,590K Lvgd Free Cash Flow:$ -7,170K
Total Debt/Equity: 0.00
Total Cash/Share: $ 0.80
Current Ratio: 1.29
Share Statistics: Stock Price History:
Shares Outstanding: 26,960K Stk 52-Week Change: 312.54%
Float: 15,680K S&P 500 52-Wk Chng: 28.60%
Sh. Short % of Float: 0.00% 50-Day Moving Avg: 12.41
Short Ratio: 1.40 200-Day Moving Avg: 11.54
% Held by Institutions: 28.00% Beta: 2.51
% Held by Insiders: 47.09%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec-09 Mar-10 Dec-09 Dec-10
Average Earnings Estimate 0.21 0.21 0.84 0.95
Average Revenue Estimate 60M 57M 208M 254M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.034 EPS Growth (Qrtly YoY): 0.001
PEG Ratio (ttm, 5 yr expected): 0.026 P/E Ratio (ttm): 0.163
Revenue Growth (Qrtly YoY): 0.669
Annual Income Statements: All numbers in thousands)
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 141,190 102,084 72,150
Cost of Revenue 104,750 76,460 57,342
Gross Profit 36,439 25,624 14,808
Operating Expenses:
Research & Development 1,648 1,136 948
Selling, General & Administrative 11,627 6,856 4,056
Non-Recurring Expenses 0 18,266 7,508
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 23,165 -634 2,297
Income from Continuing Operations:
Total Other Income/Expenses Net 1,553 871 228
Earnings Before Interest & Taxes 25,790 271 2,896
Interest Expense 2,246 1,496 808
Income Before Taxes 23,544 -1,225 2,088
Income Tax Expense 2,175 1,389 1,270
Minority Interest -2,460 -1,137 -102
Net Income from Continuing Op.s 18,909 -3,750 716
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 18,909 -3,750 716
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 18,909 -3,750 716
Quarterly Income Statements: All numbers in thousands)
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Total Revenue 58,962 49,651 39,976 34,148
Cost of Revenue 45,007 37,432 29,882 25,511
Gross Profit 13,954 12,219 10,094 8,637
Operating Expenses:
Research & Development 488 465 456 520
Selling, General & Adminis. 4,675 4,271 3,529 4,271
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 8,792 7,484 6,109 3,846
Income from Continuing Operations:
Total Other Income/Expenses Net 118 1,003 206 635
Earnings Before Int. & Taxes 8,910 8,487 6,315 4,762
Interest Expense 1,053 2,208 0 468
Income Before Taxes 7,857 6,279 6,315 4,293
Income Tax Expense 940 633 920 315
Minority Interest -410 -494 0 -675
Net Income from Continuing Op.s 6,507 5,152 5,395 3,304
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 6,507 5,152 5,395 3,304
Preferred Stock & Other Adj.s 0 223 -223 0
Net Income Avail To Common Shs 6,507 5,376 5,172 3,304
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Current Assets:
Cash & Cash Equivalents 36,321 34,716 13,081
Short Term Investments 0 0 0
Net Receivables 75,146 51,565 28,967
Inventory 44,016 12,635 13,689
Other Current Assets 1,245 343 390
Total Current Assets 156,728 99,260 56,127
Long-Term Investments 0 0 528
Property, Plant & Equipt 69,132 22,517 13,946
Goodwill 18,905 15,275 2,771
Intangible Assets 13,617 2,874 2,683
Accumulated Amortization 68 41 0
Other Assets 3,846 2,072 1,741
Deferred Long Term Asset Charges 871 440 205
Total Assets 263,030 142,397 78,000
Current Liabilities:
Accounts Payable 77,203 31,710 21,817
Short/Current Long Term Debt 44,056 10,283 14,327
Other Current Liabilities 9,110 1,125 1,049
Total Current Liabilities 130,369 43,117 37,194
Long Term Debt 16,054 17,622 0
Other Liabilities 798 0 0
Deferred LT Liability Charges 2,807 0 0
Minority Interest 10,942 3,215 2,580
Negative Goodwill 0 0 0
Total Liabilities 160,970 63,954 39,773
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 3 3 2
Retained Earnings 14,655 -1,483 3,977
Treasury Stock 0 0 0
Capital Surplus 71,350 70,643 29,648
Other Stockholder Equity 16,053 9,280 4,600
Total Stockholder Equity 102,060 78,442 38,227
Net Tangible Assets 69,538 60,293 32,773
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Current Assets:
Cash & Cash Equivalents 42,703 56,824 26,688 36,321
Short Term Investments 0 0 0 0
Net Receivables 82,422 72,926 65,467 75,146
Inventory 46,917 46,421 41,285 44,016
Other Current Assets 0 0 0 1,245
Total Current Assets 172,042 176,171 133,440 156,728
Long-Term Investments 0 0 0 0
Property, Plant & Equipt 71,883 71,049 67,166 69,132
Goodwill 18,905 18,905 18,905 18,905
Intangible Assets 13,579 13,626 13,436 13,617
Accumulated Amortization 180 143 0 68
Other Assets 2,554 2,411 5,688 3,846
Deferred LT Asset Charges 2,953 2,814 2,960 9,110
Total Assets 279,412 283,143 239,777 263,030
Current Liabilities:
Accounts Payable 75,939 84,633 59,404 77,203
Current Portion LT Debt 54,011 57,482 53,155 44,056
Other Current Liabilities 0 0 0 0
Total Current Liabilities 132,902 144,929 115,520 130,369
Long Term Debt 18,578 17,205 9,513 16,054
Other Liabilities 520 620 714 798
Deferred LT Liab. Charges 3,383 3,444 2,742 2,807
Minority Interest 7,052 6,631 6,355 10,942
Negative Goodwill 0 0 0 0
Total Liabilities 162,435 172,829 134,843 160,970
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 3 3 3 3
Retained Earnings 31,709 25,202 19,826 14,655
Treasury Stock 0 0 0 0
Capital Surplus 67,712 67,712 67,712 71,350
Other Stockholder Equity 17,554 17,398 17,393 16,053
Total Stockholder Equity 116,978 110,314 104,934 102,060
Net Tangible Assets 84,494 77,783 72,594 69,538
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Net Income 18,909 5,152 716
Operating Activites:
Depreciation 3,904 2,105 1,431
Adjustments to Net Income 816 19,698 7,241
Changes in Accounts Recv'bls 5,296 -17,153 -4,621
Changes in Liabilities -4,958 9,006 1,102
Changes in Inventories -14,862 2,265 -4,481
Changes in Other Op'ing Actv's 0 0 0
Total Cash Flow fr Operations 9,106 12,170 1,389
Investing Activities:
Capital Expenditures 0 -8,024 -3,628
Investments 0 0 38
Other Cash Flows fr Investing -37,266 -16,542 -2,629
Total Cash Flows fr Investing -37,266 -24,566 -6,219
Financing Acitivies:
Dividends Paid 0 -1,087 -1,720
Sale or Purchase of Stock 0 22,730 10,142
Net Borrowings 9,230 11,325 804
Other Cash Flows fr Financing 2,294 -3,736 -918
Total Cash Flows fr Financing 9,226 29,232 8,308
Effect of Exchange Rate Change 991 1,063 357
Change in Cash & Cash Equiv.s 17,944 -17,944 17,899
Quarterly Cash Flow: All Numbers in Thousands
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Net Income 6,507 5,152 5,395 3,304
Operating Activites:
Depreciation 1,686 1,379 1,473 1,570
Adjustments to Net Income 824 1,220 -445 713
Changes in Accounts Recv'bls -7,712 -7,206 597 16,156
Changes in Liabilities -3,916 9,897 -811 -2,420
Changes in Inventories -411 -5,166 2,651 -8,497
Changes in Other Oper'g Acts -251 251 0 0
Total Cash Flow f Operations -3,274 5,752 8,636 10,826
Investing Activities:
Capital Expenditures -6,463 1,422 -1,422 11,777
Investments 0 0 0 0
Other Cash Flows fr Investing 3,350 -2,192 -28,473 0
Total Cash Flows fr Investing -3,113 -5,545 -3,615 -16,696
Financing Acitivies:
Dividends Paid 0 0 0 -1,913
Sale or Purchase of Stock 0 0 0 0
Net Borrowings -8,599 29,938 -10,640 2,795
Other Cash Flows fr Financing 4,623 0 -12,058 0
Total Cash Flows fr Financing -3,975 17,880 452 -836
Effect of Exchange Rate Chg 65 0 -1 10
Change in Cash & Cash Equiv. -10,298 18,086 5,472 -6,695
WATG Wonder Auto Technology, Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.6289 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 0.6400 Forward P/E Ratio < 28? 2.0498
Sales Tests:
Price/Sales Ratio < 2.3? 1.1856 Inventory/Sales < 5%? 0.1604
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? 0.5245
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.2000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.6475 Working Capital >= 1.5? 1.5450
Leverage Ratio < 20%? 2.4060 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 0.9415 Inventory Turnover > 1? 3.0000
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 1.4853
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 1.4800 EPS 5-yr Growth > 20%? 1.2000
Enterprise Value/EBITDA: 1.7984 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 0.2400 Collection < 45 days? 0.2316
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 0.3716
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 0.6299
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 0.1062
Beta > 1.25? 2.0080 % Held by Institut. < 50? 1.7857
50 Da MA > 200 Da MA? 0.2011 % Held by Institut. > 30? 0.9333
52-Wk Change vs. S&P 500: 1.9068 Short Ratio > 5? 0.2800
Price/Book Value < 3? 0.9700 Short % of Float > 20? 0.0000
Return on Assets > 17%? 0.4194 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 2.3877 Positive Free Cash Flow? 0.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: -3.0000
Cash Flow / Assets >.10? -0.2566
WATG Wonder Auto Technology, Inc. Overall Zenith Index: 1.2520
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Wonder Auto Technology Group:
Symbol? WATG
Total Months Available: 40
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
6.80 2.04 12.83 5.83 15.78 8.10
RANGE = 15.78 TO 2.04 Close = 11.80
CHANNEL = 8.10 TO 6.80 Degree = 1
Volatility = 11.02% Index = 1
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The "ultimate systems" are inconclusive, giving no clear confirmed signals.
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | - 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | + 1 |
| Standard & Poor's | 0 |
| Moving Average | + 1 |
| Right Time Study | + 1 |
| Stock Fetcher | + 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | 0 |
| Total | + 17 |
Place 2,550 shares of Wonder Auto Technology Group (WATG) on the Active List.
