As shown by 2008 annual report, the company realized business turnover of Rmb1438mn (+30.66% yoy), operating profit of Rmb141mn (+12.08% yoy), net profit attributable to parent of Rmb106mn (+33.69% yoy), and EPS of Rmb0.64. The company’s dividend distribution plan in 2008 was to send pretax cash of Rmb2 for every ten shares.
Earning forecast and rating: Capital of cable assets has not been injected, cautiously, we do not take these items into consideration. Thus 2009-2010E EPS of the company is forecasted to be Rmb0.83 and Rmb1.03, representing dynamic P/E ratio at 22x and 18x based on closing price of Rmb18.6 on April 28, 2009. Considering factor of assets injection, P/E ratio might be even lower. “Buy” rating is hereby maintained.