Event
Recently, we made on-site research and investigation on the company. Generally, we think its commercial series product performance will remain steady growth. Although suffered negative impact from financial crisis in Q1 2009, its profitability is expected to be equal to that of the previous year. As a new business, performance of the fashionable series product is under further observation.
Our Analysis and Estimation
As traditional business, performance of its commercial series product maintained steady growth.
Annual statement combination of BONO is expected to lead to extensive growth.
Emerging fashionable series product is still awaited to become main business.
Investment Suggestion
We predict its main business turnover in 2009-2011E to be Rmb1217mn, Rmb1398mn and Rmb1616mn, net profit attributable to owners of parent to be Rmb151mn, Rmb176mn and Rmb202mn, and EPS to be Rmb0.79, Rmb0.92 and Rmb1.05. Owning to steady performance growth, its reasonable share price is estimated to be ~Rmb18 with the upgrade of big-cap valuation core. “Cautious” rating is hereby maintained.