In 2008, the company’s business turnover saw year-on-year increase of 33.6%; net profit was Rmb12516mn (+127.6% yoy), and basic EPS stood at Rmb2.21. The company’s dividend distribution plan was to send pretax Rmb2.3 plus additional 4 shares for every ten shares.
We believe that the company is able to attain the net profit target through large-scale rapid growth and release of provision, but effect of the latter lacks of duration. Not considering the likely change in equity, its 2009-2010E EPS is forecasted to be Rmb2.22 and Rmb2.29. Since net profit is likely to see rapid year-on-year growth in the short term, “Overweight” rating is hereby maintained.