In 2008, the company gained operating revenue of Rmb547mn (+12.87% yoy), operating profit of Rmb25.6183mn (-40.04% yoy), net profit attributable to parent of Rmb22.7726mn (-37.60% yoy) and basic EPS of Rmn0.12; additionally, the company distributed pretax Rmb0.7 cash for every 10 shares.
Earning forecast and rating: We lower its 2009-2010E EPS to be Rmb0.09 and Rmb0.11 respectively, representing P/E ratio at 75x and 65x based on closing price of Rmb6.68 on March 24, 2009; “Neutral” rating is hereby maintained.
Potential risks: Macro economy and market demand of new projects.