As its 07 Annual Report showed, the turnover of the company was 183 million yuan, an increase of 7.14 percent yoy; net profit attributable to the parent company: 29.37 million yuan, an increase of 1.55 percent yoy; basic earnings per share: 0.21 yuan; distribution plan: 1.05 yuan (before tax) for each 10 shares.
Released at the same time with its annual report, its Q1 Report showed that the company’s Q1 results fell by 16 percent due to the snowstorm. Judged from the whole year, with Pingxiang Sewage Treatment Plant’s operation beginning in May and two-tax unification as well as other positive factors, we determine the company's performance was less likely to slide.
It is expected that 08-09 EPS of the company will be 0.22 yuan and 0.23 yuan respectively with the corresponding dynamic PE at 31x and 30x. We believe that the company's assets-scale is small and it is with weak growth under the existing industrial policy. The current valuation is already high and "neutral" rating is unchanged. Risk: rising cost of water supply.