In 2008, the company reported business turnover of Rmb202mn (-38.91% yoy), operating profit of Rmb26.7196mn (-58.89% yoy), net profit attributable to parent of Rmb23.1529mn (-56.42% yoy), and basic EPS of Rmb0.131. Its performance is in line with our expectation.
Its EPS in 2009-2010E is predicted to be Rmb0.19 and Rmb0.24 respectively, representing dynamic P/E ratio at 51x and 41x based on share price of Rmb9.62. Present valuation has no obvious advantage; however, given its top-quality scenic spots and further assets acquisition plan, we hereby up-regulate its rating to “Overweight”.