Event
Recently, we paid on-site visit to the company and communicated on issues such as current status and future development of bonds securities printing industry, the company’s future development strategy, impact on its operation under current economic situation, etc.
Our Analysis and Estimation
Bonds securities printing industry will maintain rapid growth.
Segment of bonds securities printing industry: steady growth + high market concentration
Industrial leading position guaranteed, great efforts will be made to exploit other fields.
The company’s production capacity of bonds securities printing will be doubled by 2010, contributing to fast growth of the coming three years.
Investment Suggestion
We forecast the company’s 2009-2011E operating revenue to be Rmb173.3mn, Rmb240.1mn and Rmb290.31mn respectively with CAGR at 23.2%; net profit attributable to parent to be Rmb49.15mn, Rmb65.08mn and Rmb76.44mn with annual growth rate at 23.1%; EPS to be Rmb0.61, Rmb0.81 and Rmb0.96, and the prospect is worthy of expectation. Since the company is covered initially, we do not rate temporarily.