In 2008, the company realized business turnover of Rmb1036mn (+44.27% yoy), operating profit of Rmb515mn (+54.44% yoy), net profit attributable to owners of parent of Rmb384mn (+73.36% yoy), and EPS of Rmb1.20. According to its dividend distribution plan and reserve addition & transference proposal, the company was to send 3 additional shares plus Rmb2 cash and add 3 shares to the capital reserve for every ten shares.
Not considering group assets acquisition through directional add-issuance, the company’s 2009-2010E EPS is forecasted to be Rmb0.51 and Rmb0.63, representing dynamic P/E ratio at 40.9x and 32.8x based on closing price of Rmb20.81 of the previous trading day. Present share price has already reflected expectation of group assets acquisition. As price of iron ore has not turned stable, “Neutral” rating is temporarily maintained.