The company''s core business has transferred to media after previous assets restructuring, and media & gas businesses are two mainstreams of the company. During the period under view, income of its three main businesses of media, gas production & supply as well as bulk commodity transaction took up 68%, 16.7% and 17.3% of the total and gross margin 88.3%, 10.3% and 1.4%.
We forecast the company''s EPS in 2009 and 2010 at Rmb0.14 and Rmb0.16 respectively, representing P/E ratio at 27x and 23x if calculated by closing price of Rmb3.75 yesterday, and its valuation is comparatively low among the sector. Given downside industrial risks and uncertainties of advertisement injection by Beijing Capital International Airport, we hereby maintain rating of "Neutral" for the counter.