Wonder Auto Technology Inc. (WATG.OB) AT 7.1

Fundamental: 8
Chart: 8

March 27, 2007

Wonder Auto, through its subsidiary, Jinzhou Halla Electrical Equipment Co., Ltd., designs, develops, manufactures and sells automotive electrical parts and is the second largest seller of automotive alternators and starters in China. The Company's products are suitable for various types of automobiles and industrial vehicles. Wonder Auto's customers include Beijing Hyundai, Shenyang Aerospace Mitsubishi, Harbin Dong'an Mitsubishi, and Dongfeng Yueda Kia Motor Co., Ltd.

WATG reported its Fiscal 2006 Result as the following:

• Full Year 2006 revenue increased 50% to $72.2 million
• Full Year 2006 net income increased 29% to $8.2 million, or $0.33 EPS
• Revenue for the fourth quarter 2006 increased to $19.1 million or 84.4% from revenue of $10.4 million in the fourth quarter 2005.
• . Net income increased to $2.5 million or 85.8% for the fourth quarter 2006 from net income of $1.3 million in the fourth quarter 2005. Fully diluted earnings per share for the quarter were $0.10.
• The combination of increased market penetration, continued improvement in cost control and favorable business environment supports the Company's expectation for revenue to be approximately $100 million and net income to be approximately $12.8 million in fiscal year-end 2007.

WATG today announced it had filed its application for listing of its common stock on the NASDAQ Global Market. The Company believes that it meets all of the listing criteria. Once it's approved, WATG should breakout from the current trading range. WATG is a medium term hold, and it should accumulate shares from here all the way down to $6.50 as the support. Once it trades on Nasdaq Global Market, it should take off to $10. Use stop below 6.50 for stop loss.

Fair Disclosure: Do not hold a long position.