In 2008, the company realized business turnover of Rmb2.82bn (+12.11% yoy), net profit attributable to parent of Rmb108mn (+41.07% yoy), and EPS of Rmb0.63. According to its distribution plan, the company sent pretax dividend cash of Rmb1 for every ten shares.
Earning forecast and rating: Not considering Wumart’ commercial equity injection, its EPS in 2009-2010E is predicted to be Rmb0.71 and Rmb0.78, representing dynamic P/E ratio at 20x and 18x for the moment. Given its prominent internal growth, regional monopoly position and expectation of Wumart’s commercial equity injection, we maintain “Overweight” rating for the counter.