Event
The company released its Q1 2009 Report, according to which it realized business turnover of Rmb614.3145mn (-11.84% yoy), net profit attributable to parent of Rmb-17.0332mn (-Rmb2.1844mn yoy), and EPS of Rmb-0.014.
Our Analysis and Estimation
Revenue decline is mainly due to combined disparity of financial statement.
Sales gross margin improved.
Gross Margin touched the bottom, price hike began.
Capacity expansion is to be accelerated in the future.
Potential risks are worthy of attention.
Investment Suggestion
Capacity expansion will be impetus for its internal value acceleration. When the industry is entering into prosperous phase, capacity expansion of the company might be beyond the market expectation. “Recommended” rating is hereby maintained.