In accordance with 2008 annual report, the company gained operating revenue of Rmb1.458bn (+24.74% yoy), operating profit of Rmb174mn (+42.27% yoy), net profit attributable to parent of Rmb131mn (+33.70% yoy) and diluted EPS of Rmb0.44 (basically in line with our expectation). Moreover, Rmb3.90 (pre-tax) dividend was proposed for every 10 shares.
As analyzed above, we hold that the company will continue to take advantage of brand advantage and marketing channel, and rely on old products to achieve steady performance growth. We keep the 2009-2010 EPS forecast at Rmb0.54 and Rmb0.65, with “Overweight” rating unchanged.
Potential risks: 1) Lower-than-expected new product promotion; 2) Systematic risks from big-cap adjustment.