Hollysys Automation Technologies, Ltd. ( HOLI - Snapshot Report ) has gained nearly 12% since its quarterly results on August 14, which included an encouraging revenue outlook for fiscal 2013. With a price-to-book (P/B) ratio of just 1.6 and a Zacks #1 Rank (Strong Buy), this provider of automation and control technologies presents a true value option for investors.

Strong Revenue for Fiscal 2013

Hollysys Automation Technologies reported fiscal fourth quarter 2012 earnings per share of 21 cents, up 75% year over year but a penny short of the Zacks Consensus Estimate.

Revenue spiked 23% to $88.1 million on the back of healthy growth in the Industrial Automation and Overseas businesses, which accounted for roughly 58% and 8.4% of total revenue, respectively. Backlog in the quarter grew 31.5% to roughly $390 million. Gross margin improved to 41.4% from 28.8% in the year-ago quarter.

For fiscal 2012, earnings per share came in at $1.01 versus 75 cents in fiscal 2011, while revenue settled at $321.7 million compared with $262.8 million in 2011.

Driven by impressive fiscal fourth quarter results and a strong backlog, management projected fiscal 2013 total revenue of $385 million to $410 million with net income of $63 million to $67 million. At mid-points, the revenue guidance suggests year-over-year growth of 23.6% while the net income guidance suggests 15.7%.

Earnings Estimates Move Higher

Over the last 30 days, the Zacks Consensus Estimate for fiscal 2013 has advanced by 4.5% to $1.16, while the Zacks Consensus Estimate for fiscal 2014 moved up 1.6% to $1.25 per share. These outlooks represent year-over-year earnings growth of 14.4% for fiscal 2013 and 8% for fiscal 2014.

A Value Play

In addition to a low P/B ratio, Hollysys Automation Technologies is currently trading at a forward P/E multiple of 8.1, compared with the peer group average of 14.1. A P/E ratio below 15.0 and a P/B ratio under 3.0 generally indicate value.

The chart below clearly shows that the stock gained momentum following the first calendar quarter of 2009, and since then has reached new highs. Growth prospects appear bright and are backed by the rising Zacks Consensus Estimates.

Hollysys Automation Technologies is headquartered in Beijing, China, and was founded in 1993. The company makes automation and control technologies for several industries in China and other parts of Asia. Customers are in the industrial, railway, and nuclear industries. Currently, the company has a market capitalization of approximately $526.4 million.