As shown by Q1 2009 report, the company realized business turnover of Rmb3929mn (+56.9% yoy), operating profit of Rmb1173mn (+7.6% yoy), net profit attributable to owners of parent of Rmb960mn (+7.7% yoy), and basic EPS of Rmb0.21.
We forecast its 2009-2010E EPS to be Rmb0.82 and Rmb1.05, representing dynamic P/E ratio at 18x and 14x based on closing price of Rmb15.1 on April 29, 2009. Given that equipment increase ensures a steady performance growth, “Overweight” rating is hereby maintained.