It is projected that the company’s sales revenue in 2008 will exceed RMB 55 bln and net profit in 2008 will increase by 75%. However, adjustments in the scope of construction items will slow down 2009 profit growth. Analysts from Guosen Securities Co., Ltd. predict that the company's net profit in 2009 will grow by 20%.

It is also estimated that the company’s 2008, 2009 and 2010 EPS will respectively be RMB 0.78, RMB 0.95 and RMB 1.31, with corresponding dynamic P/E ratios of 10.8, 8.9 and 6.5, which are close to historic lows.

Analysts are optimistic about the development prospects of the domestic real estate market and the sustainable development of the company. Therefore, they have maintained a 'Buy' rating on the stock.


Source: www.guosen.com.cn

Date: 6 Aug 2008

CN01/MR/SW/BT/MM