2008 Annual business income was reported Rmb864mn (-4.5% YoY)
Business income suffered year-on-year decline due to evils of God and man
Economic growth slide negatively influenced the company’s operation status
To promote gross margin through overseas market expansion
The company’s product owns advanced technology, and capacity is to be released in the future. It is likely to be beneficiary of “Disney Land” construction.
It is forecasted that the company’s EPS in 2008-2010 are Rmb0.08 and Rmb0.10, representing P/E ratio at 70x and 53x if calculated based on closing price of Rmb5.56. The company’s valuation is comparatively high, and we hereby maintain “Neutral” rating for the counter.
Potential Risks: Further shrinkage of housing market; uncertainty of global financial crisis and that of Disney Land project bidding invitation.