In 2008, the company realized business turnover of Rmb7359mn (-10.33% yoy), operating profit loss of Rmb488mn, net profit attributable to parent of Rmb-2.86mn, and EPS of Rmb-0.27, which were below our expectation. The company planned no profit distribution plan or reserves-equity transference plan.
In view of a rapid recovery, we predict its 2009-2010E EPS to be Rmb0.14 and Rmb0.27, representing dynamic P/E ratio at 43x and 23x; its present share price is Rmb6.24. “Neutral” rating is hereby given.