According to its 2008 annual report issued today, the company realized business turnover of Rmb4.19bn (+36.42% yoy), total profit of Rmb189mn (-8.12% yoy), net profit attributable to parent of Rmb136mn (+14.62% yoy), and EPS of Rmb0.58. In Q4 2008, the company reported turnover of Rmb1103mn (+21.6% yoy), net profit of Rmb25.4mn (-3.88% yoy). According to the company’s dividend distribution plan, it sent pretax cash dividend of Rmb0.7 for every ten shares.
Its expenditure growth has exceeded our expectation, thus we make downward adjustment to its performance in the coming two years. It is predicted that the company’s EPS in 2009-2010E is Rmb0.73 (-13.06%) and Rmb1.04 (-6.07%), and representing dynamic P/E ratio is at 21x and 14x respectively based on closing price of Rmb15.05 on March 10, 2009. “Overweight” rating is hereby maintained.