According to the 2008 annual report issued today, the company realized operating revenue of Rmb6.421bn (+17.00% yoy), operating profit of Rmb173mn (+46.98% yoy), net profit attributable to parent of Rmb163mn (+61.36% yoy) and diluted EPS of Rmb0.80. In addition, the company planned to distribute dividends of pre-tax Rmb2.00 for every 10 shares based on total 204mn shares.
We predict 2009-2010E EPS at Rmb0.90 and Rmb1.08. Based on the closing price Rmb17.77 on February 26, 2009, corresponding P/E ratio of 2009-2010 are 20x and 16x; thus, “Overweight” rating is maintained for the counter.