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Sorl Auto Parts, Inc. (NASDAQ:SORL) stock is edging higher in the market having emerged as a great candidate for value-oriented investors. Fueling investor interest in the stock is the company’s growth prospects having posted a 24% increase in sales in the recent quarter.

 Stock Performance

 The stock is currently trading at highs of $4.47 a share threatening to register a new 52-week high. Over the last 12 months, the stock has rallied by more than 150%. A ‘buy’ rating on average from brokerage firms is an indication that the company still has some room to run on the upside as it continues to pursue growth opportunities more so in China.

With a price to sales ratio of 0.31, investors buying into the stock are essentially paying 31 cents in stock price for each revenue generated. Given that the company reported, a 24% increase in sales in the second quarter all but continues to underscore why investors are showing strong interest in the stock.

 Growth Prospects

Growth in the second quarter came at the back of a slowdown in the Chinese economy an indication that the company could do much better as it continues to expand its market position. Sales in China’s domestic market is expected to fuel growth in the aftermath of a 35% increase in the second quarter.

 While focusing on China is a good idea given the size of the target market. Sorl Auto Parts needs to do a lot more to revitalize growth on the international scene. Revenues from international markets decreasing by 1.3% is something that could come to haunt the company’s sentiments on the street if caution is not taken.

 However, the management is remaining confident of a stellar year on the earnings front, which should dispel further investor’s concern. Based on the current views on operating and market conditions the management remains confident of sales of about $200 million for the current fiscal year. The same could see Sorl Auto Parts, Inc. (NASDAQ:SORL) posting a net income of $11.5 million for the current year.

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