Event:
The company released 2008 annual report today.
During the period under view, the company realized operating revenue of Rmb16bn (+17% yoy), net profit attributable to shareholders of parent of Rmb700mn (+25% yoy) and diluted EPS of Rmb0.53; if non-recurring profit and loss deducted, net profit attributable to shareholders of parent pegged at Rmb600mn (+40% yoy).
Our Analysis and Estimation:
Q4 2008 continues the benign trend of Q3 2008 that performance gradually recovers to normal, which promotes annual recurring profit to boost sharply;
The top four brands account for 94% of the total; brand strategy has been boosted steadily;
We firmly consider the company as an A-share listed company with the most long-term investment value within food & beverage sector;
Investment Suggestion:
The company’s 2009-2011E EPS is calculated to be Rmb0.68, Rmb0.81 and Rmb0.99 separately and “Recommended” rating is maintained; we suggest investors concerning about the impact of warrant exercise.