As shown by 2008 annual report, the company realized business turnover of Rmb10174mn (+13.85% yoy), operating profit of Rmb550mn (+5.10% yoy), net profit attributable to shareholders of listed company of Rmb344mn (+29.22% yoy), and diluted EPS of Rmb0.88. The company was to send pretax dividend cash of Rmb2 for every ten shares.
We predict its 2009-2010E EPS to be Rmb1.00 and Rmb1.19, representing P/E ratio at 21x and 17x based on closing price of Rmb20.44 on April 3, 2009. We agree with its national layout expansion in northwest and southwest China, and its administrative capacity is deemed to be prominent amid domestic peers. We are still optimistic with its future development, and “Overweight” rating is hereby maintained.