According to the company’s 2008 annual report, during the period under view, it realized business turnover of Rmb835mn (-19.38% yoy), total profit of Rmb24.62mn (+16.31% yoy), net profit attributable to parent of Rmb15.78mn (+89.5% yoy), net profit of Rmb-8.15mn if nonrecurring profit & loss deducted, and EPS of Rmb0.1. The company’s dividend distribution plan in 2008 was to send Rmb0.5 for every ten shares.
It split partial assets for loss in 2009, thus investment return is predicted to increase. We upgraded its 2009-2010E EPS to be Rmb0.25 and Rmb0.28, representing dynamic P/E ratio at 36x and 32x based on closing price of Rmb8.96 on April 17, 2009. “Neutral” rating is hereby maintained.