In 2008, the company gained operating revenue of Rmb1.69bn (+0.04% yoy), total profit of Rmb987mn (-10.14% yoy), net profit attributable to parent of Rmb692mn (+33.69% yoy) and EPS of Rmb0.42, slightly higher than expected Rmb0.4; additionally, the company distributed dividend of pretax Rmb0.23, beating that of Rmb0.2 in 2007.
Operating revenue slowly grew due to multi-factors.
Income tax was the main reason for substantial surge of net profit.
It is forecasted that the company’s 2009-2010E EPS are Rmb0.35 and Rmb0.38, representing P/E ratio of 13.2x and 12.2x based on closing price (Rmb4.59) of March 6, 2009. Valuation advantages are not obvious, and the company may continue being negatively affected due to construction expansion and alternation in 2009, thus “Neutral” rating is hereby maintained.