Presented by Nan Liang Tianbai Wang Qi He May 1, 2012.

Presented byNan LiangTianbai WangQi HeMay 1, 2012

Agenda Intro Related Stock Market Macro Review Business Review Comps Financial Analysis DCF

Intro Business Description

Gentex Corporation designs, develops, manufactures and markets proprietary electro-optic products, including automatic-dimming rearview mirrors for the automotive industry and fire protection products mainly for the commercial building industry.

Sector: Consumer Goods Industry: Auto Parts & Equipment GICS Map: 251010 Revenue in 2011: 1.02Billion

Resource: GNTX 10-K

Products

Resource: GNTX Official Website

Global Business Distribution

Resource: GNTX Official Website

Financial Description52 Week Range: $20.69 - $32.21PEG: 0.95Trailing P/E: 18.78Forward P/E: 15.26Implied 1 Year Growth Rate: 23%5-7 Growth Rate: 5.14%Market Cap: 3.15 BBeta: 1.51

Intro

Resource: Yahoo Finance

Related Stock Market

Resource: Yahoo Finance

Industry

Global Automobile Manufacturing & Auto Parts Manufacturing

Global Auto Vehicle Sales

Global Auto Parts Manufacturing

Resource: IBIS World

Business Locations

Resource: IBIS World

Automakers

Resource: IBIS World

Industry Opportunity

Opportunity 1 – Better Economy

When households are optimistic about their financial future and the economy, they are more likely to spend money on big-ticket items. Purchasing a new vehicle requires a significant outlay, which is often financed through loans. In times of economic downturns, households are less willing to spend money on expensive items, for fear of losing their jobs and being unable to meet repayments. Consumer sentiment has been fairly low around the globe in 2009 due to the global financial crisis.

Resource: IBIS World

Opportunity 2 – Demand Growth

Opportunity 3- Government Incentives During Recession

Opportunity 4 – Regulation & Innovation

Market Risks

ESTIMATED AUTOMATIC-DIMMING MIRROR ESTIMATED AUTOMATIC-DIMMING MIRROR GLOBAL MARKET SHAREGLOBAL MARKET SHARE

Resource: GNTX Presentation

Auto-Dimming Rearview Mirrors Market

Resource: GNTX 10-K

FireProtectionProducts

Auto-DimmingRearview Mirrors

DimmableAircraft

Windows

Product Lines

98%Of Total Sales

Found In 1974Manufacturer Of These

i.e. Boeing 787

Source: Gentex’s Website

Auto-dimming Mirrors

Source: Investor Presentation

Glare

Smart Beams ®

Source: Investor Presentation

Rear Camera Display (RCD) Mirror

Source: Investor Presentation

Revenue GrowthSource: Annual Reports

Main ClientsSource: Annual Reports

Region

Source: Annual Reports

Global Market Share (2011)

Source: Annual Reports

Main CompetitorMagna Mirrors

Competitor: Magna Mirrors+ Owned by Magna International, Inc. (NYSE: MGA)+ MGA also produces lots of auto parts for cars: Body, Seating, Roof, and hybrid energy system, etc.

It’s Gentex’s Main Competitor.But Comparable or Not?

Multiples

Source: Bloomberg & Yahoo!Finance

　 GNTX MGA DLPH LEA BWAMkt. Cap 3.21B 10.21B 10.16B 4.22B 9.17B EPS 1.17 4.20 3.61 5.08 4.73 P/E 19.12 10.44 8.57 8.27 16.90 EV/EBITDA 9.77 4.54 4.89 3.13 8.97

Target Price: $7 - $20

Gentex Current Price: $22

Capital Structure 0 Debt

Quick Ratio

Data Source : 10-K

2007 2008 2009 2010 2011Cash Ratio 4.65 5.95 5.73 4.83 3.56 Current Ratio 7.73 9.24 8.62 9.09 7.47

2.50

3.50

4.50

5.50

6.50

7.50

8.50

9.50

10.50

Quick Ratio

Financial Analysis

FY 2011 FY 2010 FY 2009 FY 2008 FY 2007

Tax Burden 67.4% 67.7% 67.1% 67.3% 67.9%

Operating Margin 22.6% 23.4% 17.4% 17.4% 21.7%

Asset Turnover 0.94 0.89 0.69 0.75 0.78

Leverage Ratio 1.13 1.12 1.11 1.10 1.12

ROA 21.2% 20.9% 11.9% 13.1% 16.8%

5 Year Average Adj ROE 14.0% 13.4% 12.8% 14.0% 15.2%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

DuPont Analysis

Data Source : 10-K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016TERMINA

L YEAR

Profit Margin 18.68% 9.95% 11.87% 16.87% 16.08% 15.66% 15.61% 14.76% 14.87% 14.67% 13.65%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

Profit Margin

Data Source : 10-K

Current Price: $22.05

DCF: $27.2 - $35.5

Multiple: $7- $20

Buy 200 shares at market price,

about 1.5% of the portfolio

Recommendation