Event:
The company issued 2008 annual report and convened performance promotion conference; in 2008, net profit attributable to parent suffered loss of Rmb3.7bn and EPS pegged at Rmb-0.31.
Our Analysis and Estimation
We hold relatively optimistic view on unit utility in Jiangsu and Shandong; average annual utilization hour of fire coal may reach up to 4,900 in 2009 and annual generating capacity will reach 190bn Kwh.
Investment Suggestion:
We forecast the company’s 2009-2010E EPS to be Rmb0.36 and Rmb0.44 and maintain “Cautious” rating unchanged.