Event
The company announced on May 8, 2010 that Xiamen C & D Group has increased holdings of 1,220,024 shares via Shanghai Stock Exchange on May 7, 2010. After that, the company’s holdings will be 574,340,024 shares, accounting for 46.199% of the total. Xiamen C & D Group plans to increase holdings through secondary market and promises not to decrease holdings of other companies during this period.
Our Analysis and Estimation
1. Trade business steadily develops.
2. Trade business will become the major force to contribute performance in 2010.
Investment Suggestion
We predict 2010-2012E EPS to be Rmb1.21, Rmb1.48 and Rmb1.72 respectively. The company’s increasing holding shows that as a steadily growing company, its actual value is underestimated; West-Straits Economic Area and ongoing project (such as Violet Gold Copper Crown Project) are expected to become catalyzer of share price. Thus “Recommended” rating is maintained.