The company gradually sees the upturn as it closes the unprofitable enterprises.
Its 2008 loss is mainly due to shutdown of its innovative store in Xining, Qinghai province and disposition of relative assets in Hebei Jining Food Co., Ltd. Having eliminated negative impacts from previous expansion failure, its assets quality sees obvious improvement, and internal growth potential is considered great. Not considering the increased department stores, we predict its 2009-2011E EPS to be Rmb0.13, Rmb0.17 and Rmb0.21 respectively.
Its operational characteristics are protruding.
Performance of departments in western regions is benign.
“Cautious” rating is given for the first time.