In 2008, the company reported business turnover of Rmb6349mn (+33.11% yoy), total profit of Rmb577mn (+28.55% yoy), net profit attributable to shareholders of the company of Rmb460mn (+58.48% yoy), and basic EPS of Rmb1.18. Besides, the company distributed pretax cash dividend of Rmb1.5 for every ten shares.
We predict the company’s EPS in 2008-2010E to be Rmb1.41 and Rmb1.69; based on closing price of Rmb23.57 on March 10, 2009, P/E ratio is at 17x and 14x respectively. Given rapid capacity expansion and industrial chain integration, we hereby maintain rating of “Overweight” for the counter.