Event
The company announced its Q1 2009 report today, according to which, it realized operating revenue of Rmb4.047bn (-14.07% yoy), net profit attributable to shareholders of listed company of Rmb56.2mn (-63.56% yoy) and EPS of Rmb0.13.
Our Analysis and Estimation
Sales volume of Q1 2009 gradually recovers; market share rapidly surges.
Sales expense substantially ascends owing to sales ascension.
2009 performance is sourced from scale recovery of production & sales as well as gross margin surge.
Investment Suggestion
According to status in Q1 2009, we upgrade its 2009 sales expense ratio and slightly upgrade 2009 sales forecast; 2009-2011E EPS is predicted to be Rmb1.07, Rmb1.58 and Rmb1.75 respectively, representing 2009 P/E ratio at 20x, which is above the industrial average, thus “Cautious” rating is hereby maintained for the counter.