In 2008, the company reported business turnover of Rmb520mn (+49.4% yoy), net profit attributable to parent of Rmb110mn (+28.6% yoy), and diluted EPS of Rmb0.27, which was totally in line with our expectation. In Q4 2008, the company reported business turnover of Rmb180mn and EPS of Rmb0.09.
We forecast the company’s EPS in 2009-2010E to be Rmb0.41 and Rmb0.59, representing dynamic P/E ratio at 27x and 19x respectively. “Overweight” rating is hereby maintained.