According to its 2008 annual report, the company realized total business turnover of Rmb1727mn (+33.74% yoy), operating profit of Rmb334mn (+38.39% yoy), net profit attributable to parent of Rmb295mn (+64.74% yoy), and diluted EPS of Rmb0.39. According to the company’s distribution plan, it sent five additional shares and five for transference & increase, plus pretax dividend cash of Rmb0.60.
We hereby up-regulate the company’s EPS to Rmb0.55 in 2009, and Rmb0.74 in 2010. Based on closing price of Rmb12.73 on March 18, 2009, its 2009 dynamic P/E ratio is 23x, and “Buy” rating is hereby given.