For 07, the company posted turnover of 886 million yuan (+3.88% YoY), net profit attributable to parent of 289 million yuan (+19.49% YoY) and diluted EPS of 0.287 yuan with a before-tax dividend of 1.5 yuan for every 10 shares.
Sound operation and stable growth. During the period under review, operation of offices, malls and apartments faired well. Their rents and occupancy rates rose steadily. For the three kinds of building, occupancy rate reached 96.94%, 99.79 and 81.50% respectively while monthly rent averaged 353.79 yuan per square meter (+1.8% YoY), 661.37 yuan per square meter (+12.6% YoY) and 210.34 yuan per square meter (basically flat YoY) respectively.
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Earnings forecast and rating. We forecast 08-09E EPS to be 0.42 yuan and 0.69 yuan respectively. Given sound operation and growth potential because of Phase III, we initiate our coverage of this counter with an OVERWEIGHT rating.