SORL Auto Parts, Inc. (NASDAQ: SORL) shares rose after reporting upbeat Q1 results.
The China-based SORL, a leading manufacturer and distributor of automotive brake systems as well as other key safety-related auto parts, announced net sales for the 2018 first quarter increased by 44.1% to $107.7 million from $74.4 million in the first quarter of 2017. Net sales by segment grew by 33.5%, 73.2% and 27.9% in the OEM, aftermarket and international markets, respectively, in the first quarter of 2018. Gross profit increased by 43.5% with a gross margin of 28.0% compared with 28.2% in the first quarter of 2017.
Net Income attributable to stockholders rose 19.5% to $8.3 million, or $0.43 per diluted share, compared with $6.9 million, or $0.36 per diluted share in the first quarter of 2017.
CEO Xiaoping Zhang, SORL's Chief Executive Officer and Chairman, stated, "We are pleased to report strong sales growth across the board in the first quarter of 2018. We have been consistently outperforming the commercial vehicle market in China as our advanced products with high technology content continue to capture market shares. Our sales growth combined with strict cost controls and higher efficiency in our new production has created earnings growth as well."
As of March 31, 2018, the Company had cash, cash equivalents and restricted cash of $69.3 million compared to $4.6 million on December 31, 2017. Net accounts receivable rose to $173.2 million from $134.4 million at December 31, 2017
SORL shares soared 74 cents, or 14.1%, to $5.98.
