China Automotive Systems, Inc. (CAAS) is posting huge year-over-year revenue gains, driving its share price to a new 52-week and all-time high.
Company Description
China Automotive Systems, Inc., through its 9 individual subsidiaries, develops and manufactures various automotive components for the automobile industry in China. The company was founded in 2003 and has a market cap of $343 million.
In spite of the global economic collapse of last year, China has continued to grow at an impressive rate, on pace to post GDP growth of 9% in 2009. That dynamic has empowered its consumer class, lifting China Automotive to better than expected 2nd-quarter results, reported on August 12.
Second-Quarter Results
Sales were up 34% from last year to $62.5 million. Earnings also came in strong at 24 cents per share, 11 cents ahead of the Zacks Consensus Estimate. The company noted that its steering products increased 45% from last year to $41.8 million, while its cash and equivalents totaled $47.8 million.
Estimates
Estimates jumped after the good quarter, with the current year adding 12 cents and moving to 54 cents per share. The next-year estimate is pegged at 63 cents, a bullish 18% growth projection.
Based on the current-year estimate, shares of CAAS have a P/E multiple of 23X, a premium to the overall market.
The Chart
Shares of CAAS are up huge over the last 6 months after bottoming out just above $2 in early March. Take a look below.
