In 2008, the company reported business turnover of Rmb1311mn (+23.61% yoy), operating profit of Rmb145mn (+24.70% yoy), net profit attributable to parent of Rmb105mn (+15.25% yoy), and basic EPS of Rmb0.385. The company’s dividend distribution plan was to send pretax cash of Rmb1.30 for every ten shares.
Earning forecast and rating: Supposing that domestic business turnover grows steadily, exportation of yeast extract sustains fast increase and that gross margin keeps smooth, its 2009-2010E EPS is forecasted to be Rmb0.53, Rmb0.65 and Rmb0.81 respectively, representing dynamic P/E ratio at 26x, 21x and 17x based on closing price of Rmb13.45 on March 26, 2009. “Neutral” rating is hereby maintained.