China Stock Profile – Wonder Auto Technology, Inc.

(WATG)1

Statistics for WATG:

P/E 16.2
Long Term EPS Growth 20%
PEG Ratio 0.82
Net Margin 15%
Average Rating Value 1.67
Average Rating Buy
Average Target Price 9.5
Current Price 12.07
Year to Date Performance 208%
Institutional Ownership 73%
Short Interest as % of Float 5.52%

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of WATG

WATG Company Profile

WATG is involved in the business of designing, developing, manufacturing, and selling automotive
electrical parts in China. The company offers alternators, starters, engine valves, tappets, rods, shafts,
rectifiers, regulator products, engine valves, and tappets for passenger cars and commercial vehicles. The
1
By H.U.
company sells its products to automakers, engine manufacturers, and auto parts suppliers in China. Wonder
Auto Technology, Inc. is headquartered in Jinzhou in China.

Key Executives of WATG

Mr. Qingjie Zhao , 52

Chairman, Chief Exec. Officer and Pres
Mr. Meirong Yuan , 37
Chief Financial Officer, Principal Accounting Officer, Treasurer
Mr. Yuncong Ma , 63
Chief Operating Officer
Yechon Xie ,
Sec.
Mr. Yuguo Zhao , 53
VP of Sales & Marketing

Major Holders of WATG

TOP INSTITUTIONAL HOLDERS

Holder Shares % Out Value* Reported

ESSEX INVESTMENT MANAGEMENT
1,650,181 6.12 $5,907,647 31-Mar-09
CO INC
ARDSLEY ADVISORY PARTNERS 1,295,000 4.80 $4,636,100 31-Mar-09
GLOBEFLEX CAPITAL, L.P. 542,349 2.01 $1,941,609 31-Mar-09
Forward Uniplan Advisors, Inc. 439,600 1.63 $1,573,768 31-Mar-09
WHITEBOX ADVISORS, LLC 394,709 1.46 $1,413,058 31-Mar-09
Barclays Global Investors UK Holdings Ltd 380,078 1.41 $1,360,679 31-Mar-09
KEANE CAPITAL MANAGEMENT, INC. 329,869 1.22 $1,180,931 31-Mar-09
VANGUARD GROUP, INC. (THE) 254,515 .94 $911,163 31-Mar-09
ROYCE & ASSOCIATES, INC. 249,677 .93 $893,843 31-Mar-09
HEARTLAND ADVISORS INC. 161,238 .60 $577,232 31-Mar-09

TOP MUTUAL FUND HOLDERS

 Holder Shares % Out Value* Reported
Managers AMG Funds-Essex Small/Micro
403,959 1.50 $3,284,186 31-May-09
Cap Fund
VANGUARD EXPLORER FUND, INC. 216,644 .80 $1,458,014 30-Apr-09
ISHARES RUSSELL 2000 INDEX FD 181,335 .67 $1,474,253 31-May-09
HEARTLAND VALUE FUND 161,238 .60 $577,232 31-Mar-09
Unified Series Trust-Auer Growth Fd 155,000 .57 $1,260,150 31-May-09
GE INSTITUTIONAL SMALL-CAP
135,307 .50 $1,100,045 31-May-09
VALUE EQUITY FUND
BRIDGEWAY FDS INC-ULTRA SMALL
130,000 .48 $465,400 31-Mar-09
COMPANY FD
ISHARES RUSSELL 2000 GROWTH
97,748 .36 $794,691 31-May-09
INDEX FD
Principal Small Cap Growth Fd II 91,444 .34 $743,439 31-May-09
Powershares Exhg Traded Fd-Powershares
77,384 .29 $520,794 30-Apr-09
Golden Dragon Halter

Analysts’ Estimates

Current Qtr Next Qtr Current Year Next Year

Earnings Est
Jun-09 Sep-09 Dec-09 Dec-10
Avg. Estimate 0.20 0.23 0.83 0.98
No. of Analysts 6 6 6 6
Low Estimate 0.19 0.21 0.81 0.91
High Estimate 0.20 0.26 0.87 1.04
Year Ago EPS 0.20 0.24 0.70 0.83

Analysts estimate earnings growth for WATG to be 18.1% next year.

Recent News Headlines for WATG

[July 7th] Wonder Auto Technology Receives RMB 104 Million Loans from BANK OF CHINA and CHINA
CITIC BANK to Improve Capital Structure.

[July 9th] The company filed on October 6, 2008 and January 8, 2009 that the Company's indirect wholly
owned subsidiary Jinzhou Halla Electrical Equipment Co., Ltd. entered into separate Equity Transfer
Agreements with Hony Capital II, L.P. and Magic Era Group Limited, respectively, to acquire in aggregate
100% equity ownership of Yearcity Limited, a British Virgin Islands company.

On July 3, 2009, Jingzhou Halla closed the acquisition of the 100% ownership of Yearcity as it received
approval of the acquisition by the Department of Foreign Trade and Economic Cooperation, Liaoning
Province of China.

[July 24th] WONDER AUTO TECHNOLOGY INC Earnings Call scheduled for Mon, August 3rd.
WATG Financial Statements

Income Statement 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 and Administrative 11,627 6,856 4,056
Non Recurring - 18,266 7,508
Others - - -

Total Operating Expenses - - -

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 And Taxes 25,790 271 2,896
Interest Expense 2,246 1,496 808
Income Before Tax 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 Ops 18,909 (3,750) 716

Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 18,909 (3,750) 716
Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares $18,909 ($3,750) $716

Balance Sheet PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Assets
Current Assets
Cash And Cash Equivalents 36,321 34,716 13,081
Short Term Investments - - -
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 - - 528
Property Plant and Equipment 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 -
Other Assets 3,846 2,072 1,741
Deferred Long Term Asset Charges 871 440 205

Total Assets 263,030 142,397 78,000

Liabilities
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 -
Other Liabilities 798 - -
Deferred Long Term Liability Charges 2,807 - -
Minority Interest 10,942 3,215 2,580
Negative Goodwill - - -
Total Liabilities 160,970 63,954 39,773

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 3 3 2
Retained Earnings 14,655 (1,483) 3,977
Treasury Stock - - -
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

Cash Flow Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income 18,909 (3,750) 716

Operating Activities, Cash Flows Provided By or Used In

Depreciation 3,904 2,105 1,431
Adjustments To Net Income 816 19,698 7,241
Changes In Accounts Receivables 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 Operating Activities - - -

Total Cash Flow From Operating Activities 9,106 12,170 1,389

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures - (8,024) (3,628)
Investments - - 38
Other Cashflows from Investing Activities (37,266) (16,542) (2,629)

Total Cash Flows From Investing Activities (37,266) (24,566) (6,219)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (2,297) (1,087) (1,720)
Sale Purchase of Stock - 22,730 10,142
Net Borrowings 9,230 11,325 804
Other Cash Flows from Financing Activities 2,294 (3,736) (918)
Total Cash Flows From Financing Activities 9,226 29,232 8,308
Effect Of Exchange Rate Changes 991 1,063 357

Change In Cash and Cash Equivalents ($17,944) $17,899 $3,835

Reference

Yahoo Finance
China Analyst