During the first three months of 2009, the company reported business turnover of Rmb129.9mn (+64.1% yoy), operating profit of Rmb4.73mn (-11.9% yoy), net profit attributable to owners of parent of Rmb6.31mn (+8.1% yoy), and basic EPS of Rmb0.09. According to its anticipation, variation of its net profit attributable to owners of parent will be below 30% yoy in 1H2009.
We predict its 2009-2010E EPS to be Rmb1.85 and Rmb2.24, representing dynamic P/E ratio at 25x and 20x based on closing price of Rmb45.3 on April 14, 2009. We consider net profit growth in the coming two years is expected to sustain at ~20%, thus “Overweight” rating is hereby maintained.