Automobiles heralded the stock market age in North America. Detroit has been an enduring symbol of private enterprise backed democratically by public contributions to equity. We do not know if the migration of these industrial and financial powers to emerging economies and to other lands is permanent, but stock investment in road transportation of goods and people remains an important component of the most stable investment portfolios.

Here is a stock that gives American stock investors a rare chance to own stocks of a sizeable and reasonably profitable auto and truck parts industry player from China. The stock listing on NASDAQ is an assurance that the company is in compliance with statutory reporting, disclosure, and governance norms. The business is not limited to servicing the domestic market, vast as it is in China, but also acts as an Other Equipment Manufacturer (OEM) to automobile industries in other countries.

The demand for buses and trucks stretches from all over Asia to Latin America and to Africa as well. These large and relatively new streams of industrial growth are in addition to steady requirements from first world economies. Which country does not need commercial and public transport vehicles? The company deals mainly in braking systems and parts, so it will continue to enjoy flourishing demand as countries switch road transport systems from fossil fuels to hybrid engines.

The brand name is not especially attractive, but this matters little in a field of industrial selling. The company has recently made a major break in the competitive OEM market of India, which establishes its client acceptance. The net profit margin of less than 11% over the last four quarters is not spectacular, but investors could find this stock to be a durable bulwark against a recession.

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