In its 2008 annual report, the company reported operating revenue of Rmb636mn (+47.41% yoy), operating profit of Rmb65mn (+35.71% yoy), net profit attributable to owners of parent of Rmb68mn (+41.76% yoy) and diluted EPS of Rmn0.69.; in addition, the company distributed dividend of pretax Rmb2.2 for every 10 shares.
Earning forecast and rating: We predict its 2009-2010E EPS to be Rmb0.97 and Rmb1.12, representing P/E ratio at 21x and 18x based on closing price of Rmb20.17 of the previous trading day; in the light of its benign development, fining management and strong control on cost expenses, we hereby maintain “Overweight” rating for the counter.
Potential risks: 1) Aquatic product indent may decline due to financial crisis; 2) Slow market exploration in ice cream business; 3) Drop of the big-cap.