CAAS – China Automotive Systems (Nasdaq) – (Closing Price – $5.73)
China Automotive Systems reported fourth quarter results on Tuesday March 25 and reported sound results.
China Automotive Systems came in with revenue of 37.71 million and earnings per diluted share of 0.09. Revenue for the quarter was up 36% year over year and up 21% sequentially. EPS was up from 0.06 last year but was down from the prior two quarters. The company said EPS in the fourth quarter was hurt by higher R&D and SG&A expenses. For the full year diluted EPS improved 76% to 0.37 from 0.21 last year.
The stock price of China Automotive Systems hit a 52 week low of $4.40 just before earnings but has rebounded nicely since. At Friday’s closing price the company is trading at a trailing PE of 15. This is much cheaper than the company has traded at in the past two years. (more…)