Excerpts:

For the period of January-June 2008, revenue of the company soared 34.97% yoy and profit rose 3.83% yoy; net profit to the parent company saw an increase of 2.43% yoy; EPS: Rmb0.21. Real estate business of the company enjoyed a small growth in gross margin, while gross margin of other business declined to some extent. Despite many unfavorable factors, 1H2008 earnings of the company still went up slightly, showing its strong anti-risk capability and proving its current framework conducive to decentralize operational risks. Taking into account the negative effects on its various businesses in the first half of 2008, we lower the forecast of its 2008-2009 EPS to Rmb0.44 and Rmb0.69 respectively with the corresponding 29xPE and 24xPE on August 14. Given its increasingly complete industrial chain and growth prospects of its main business, "overweight" rating is reiterated.