In 2008, the company reported business turnover of Rmb638mm (+37.46% yoy), operating profit of Rmb58.0948mn (+41.14% yoy), net profit attributable to parent of Rmb51.0578mn (+45.50% yoy), and EPS of Rmb0.56. Besides, the company distributed pretax dividend of Rmb2.50 cash for every ten shares plus 9 additional shares.
Based on current equity, we predict its EPS in 2009-2010E to be Rmb0.76 and Rmb1.03 respectively; after share addition in accordance with current distribution plan, its EPS in 2009-2010E will be Rmb0.40 and Rmb0.54, representing P/E ratio at 23x and 17x or 43x and 32x if calculated by closing price of Rmb17.21 on March 19, 2009. “Overweight” rating is hereby maintained.