The company has been sustaining positive growth for many years, and we attribute this mainly to advantages as follows:
Scale advantage builds a super profitability.
Overseas OEM market becomes future main growth points.
Domestic OEM growth is mainly sourced from sector average growth as well as model suit of Toyota China.
Maintenance markets home and abroad keep steady.
We think negative impact of construction float glass is of limit. Under pessimistic estimation, its negative impact to EPS is -0.052. We forecast its 2009-2010E EPS to be Rmb0.42, Rmb0.41 and Rmb0.43 respectively. Since its 2009 P/E is below the sector average, we hereby give “Recommended” rating for the counter.