According to 2008 annual report, the company realized total turnover of Rmb8376mn (-39.06% yoy), operating profit of Rmb24.4869mn (-70.87% yoy), net profit attributable to parent of Rmb19.2323mn (-75.80% yoy), net profit attributable to parent of Rmb-124mn deducting the non-recurrent profit & loss, and EPS of Rmb0.04, whereas it was Rmb0.55 during the previous year.
We forecast that the company’s net profit attributable to parent in 2009 is Rmb27.88mn, and EPS in 2009-2010E to be Rmb0.05 and Rmb0.18. Based on closing price of Rmb6.81 on March 9, 2009, 2009-2010E dynamic P/E ratio is at 136x and 38x, and rating of “Neutral” is hereby maintained.