In 2008, the company realized operating revenue of Rmb857mn (+2.17% yoy), total profit of Rmb142 (-24.77% yoy), net profit attributable to parent of Rmb99.16mn (-28.00% yoy), and diluted EPS of Rmb0.60.
It is predicted that the company’s EPS in 2009-2010 is Rmb0.72 and Rmb0.82 respectively; based on closing price of Rmb16.33 on March 12, 2009, dynamic P/E ratio is at 23x and 20x. Since 3G network construction & grid restructuring in rural and urban area brings potential prospect, we hereby maintain “Overweight” rating for the counter.