The company gained operating revenue of Rmb882mn (+1.36% yoy), operating profit of Rmb98.23mn (-30.30% yoy), net profit attributable to shareholders of parent of Rmb79.08mn (-35.66% yoy) and basic EPS of Rmb0.17 in 2008. Additionally, the company planed to distribute dividend of pretax Rmb1 cash for every 10 shares.
We lower the company’s 2009-2010E EPS to be Rmb0.19 and Rmb0.23, representing dynamic P/E ratio at 41x and 35x respectively based closing price of Rmb7.93 on March 17, 2009. Given single revenue source and uncertain refinancing plan, we give “Neutral” rating for the present.