During the period under view, the company reported business turnover of Rmb1.04bn (+8.4% yoy), operating profit of Rmb64.78mn (+49.5% yoy), net profit attributable to parent of Rmb49.88mn (+49.0% yoy), and EPS of Rmb0.25. (It was Rmb0.17 in the corresponding period of 2007). Its net profit attributable to owners of parent in 1H2009 is predicted to see year-on-year increase of 30%-60%.
During the period under view, its newly signed construction contract totaled over Rmb1.4bn, which was in line with the fixed target of over Rmb5.6bn for the whole year. We do not adjust its earning forecast for the moment. Its 2009-2010E EPS is predicted to be Rmb1.58 and Rmb1.77 if diluted share price due to equity transference-increase plan deducted, representing dynamic P/E ratio at 16x and 14x based on current share price of Rmb24.94. “Overweight” rating is hereby maintained.