As shown in 2008 annual report, the company realized operating revenue of Rmb7.048bn (+36.85% yoy), net profit attributable to parent of Rmb452mn (+28.71% yoy) and diluted EPS of Rmb1.01. Additionally, the company distributed dividend of pretax Rmb0.50 and sent 4 shares for every 10 shares plus additional two shares.
Earning forecast and rating: Based on latest total equity of 447mn shares, we forecast 2009-2010E EPS to be Rmb1.21 and Rmb1.47, representing P/E ratio of 18x and 15x according to closing price of Rmb21.91 on March 13; “Overweight” rating is hereby given for the counter.