Measured Approach

Data as of

: January 8, 2010

Industry: Auto & Truck Parts

Current Data

Current Price$10.31PEG0.9Market Cap ($M)$188.5EPS TTM ($)$0.52Shares Outstanding (M)18.2P/E TTM19.8XInstitutional Holdings %6.9%EPS Estimated 2009 ($)$0.59Insider Holdings %62.1%P/Estimated EPS17.6XBeta2.35

MA Value ($)$22.00

Latest Quarter Reported09/30/2009Dividend Yield %0.0%

Based on filings with the Securities and Exchange Commission (SEC),through its 90% ownership of the Ruili Group Ruian Auto Parts Co.,Ltd., a sino-foreign joint venture (the "Joint Venture"), SORL Auto Parts,Inc. (the "Company") develops, manufactures and distributesautomotive air brake valves and related components to automotiveoriginal equipment manufacturers, or OEMs, and the relatedaftermarket both in China and internationally. Installed on the chassis,air brake valves include a collection of various air brake componentsusing compressed air and functioning as the execution device forservice braking and parking braking. The Company's products areprincipally used in commercial vehicles weighing over three tons, suchas trucks and buses

The company has an established sales network of 28 authorizeddistributors throughout China selling to companies such as FAWQingdao Automobile Works, First Auto Group, Dongfeng Axle, BeiqiFoton Motors, Zhucheng Automobile Works, and Liuzhou Special AutoManufacturing. The company’s major international customers includeGolden Dragon Auto Spare Parts, ITM, LIL/MILA, Makrotech, Polmo andFota.Sorl seeks to expand its international customer base and has receiveddelegations from Brazil, India, Russia and the United States. Thecompany has four authorized sales centers in Australia, United ArabEmirates, India and the United States with additional offices slated toopen. Sorl projects exports will increase by 30% in 2010.By The Numbers

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The PEG ratio for SORL (0.97) is favorable.

SORL

seems valuedat a discount with one of the lowest PEG ratios in the Auto & Truck Parts industry