In 2008, the company realized total business turnover of Rmb4.17bn (+22.5% yoy), net profit attributable to parent of Rmb118mn (+42.6% yoy), and diluted EPS of Rmb0.27. The company’s dividend distribution plan was to send Rmb0.78 for every ten shares to its biggest shareholder Xi’an Aero Engine Group, and to send Rmb1.01 for every ten shares to other shareholders.
We forecast its 2009-2011E EPS to be Rmb0.41, Rmb0.53 and Rmb0.56 respectively, representing dynamic P/E ratio at 38.95x, 30.13x and 28.52x based on closing price of Rmb15.97 on March 31, 2009. Given the high P/E ratio, “Neutral” rating is hereby maintained.