Vehicle parts maker Norstar Founders Group aims to raise $216 million to $266 million from a main-board listing this month, taking advantage of investors' fervour in the mainland's booming motor sector. The Anhui province-based company is hoping to sell 200 million new shares at $1.08 to $1.33 each to finance the research and development of new types of spare part, new facilities for the production of composite friction material used in brakes and the construction of a research and development centre. The shares to be sold are equivalent to 25 per cent of the company's stock after its listing, with the remainder owned by chairwoman Lilly Huang, who is primarily involved in the company's marketing activities in the United States. The target price is 6.06 to 7.45 times forecast earnings per share for this business year to March, during which it has forecast a net profit of not less than 150 million yuan (HK$140.58 million). Net profit rose 58.53 per cent to 131.72 million yuan in the past year, as turnover surged 34.63 per cent to 1.02 billion yuan. Spare parts - mainly components of brake systems - account for about 78 per cent of the company's total turnover, while decorative hardware products - mostly door hinges and door tracks - account for about 22 per cent. The two categories command similar profit margins, with Norstar's overall gross profit margin amounting to 18 per cent with its net margin at 9.54 per cent. Only 1 per cent of the company's sales were for the domestic market, with 38 per cent exported to the US, 9 per cent to Canada and 6 per cent to Europe. The company warned in its listing prospectus that its accounts receivables were on the high side, at 209 million yuan at the end of March, equivalent to 15 per cent of its turnover.