In 2008, the company reported business turnover of Rmb385mn (+11.61% yoy), operating profit of Rmb25.94mn which turned losses into gains, net profit attributable to parent of Rmb22.278mn which turned losses into gains, and basic EPS of Rmb0.11. The company planned no share transference plan in 2008.
Earning forecast and rating: In 2008, the company turned losses into gains and both sales revenue and gross profit saw increase. However, most of net profit attributable to parent was sourced from investment return that gained from subsidiary equity, which was considered as non-recurring profit and loss. According to our earning forecast, its 2009-2010E EPS is Rmb0.06 an Rmb0.09, representing dynamic P/E ratio at 150x and 100x based on closing price of Rmb8.97 on April 3, 2009. “Neutral” rating is hereby maintained.