In 2008, the company reported business turnover of Rmb1085mn (+28.23% yoy), operating profit of Rmb76.55mn (+19.49% yoy), net profit attributable to parent of Rmb73.39mn (+1.44% yoy), and diluted EPS of Rmb0.21. The company had no dividend distribution plan in 2008.
The company’s EPS in 2009 and 2010 is forecasted to be Rmb0.37 and Rmb0.46 respectively, representing 2009 dynamic P/E ratio at 16x based on closing price of Rmb6.20 on March 11, 2009. We hereby give “Overweight” rating for the counter.