As shown by 2008 annual report, the company realized business turnover of Rmb1.91bn (-4.5% yoy), operating profit of Rmb1.03bn (-1.8% yoy), net profit attributable to parent of Rmb640mn (-3.2% yoy), and diluted EPS of Rmb0.997, which was slightly higher than our expectation of Rmb0.98. Besides, the company was to send pretax Rmb5 for every ten shares.
We lower the company’s 2009-2010E earning forecast to Rmb0.71 and Rmb0.75. 2009 P/E ratio is at 19x based on current share price of the company, which is below the sector average. However, since profit slide is rather obvious, and its long-term development space is of limit due to the limitation of berth, we consider its share price is hard for to earn superior premiums. “Neutral” rating is hereby kept.