Shanghai Pudong Development Bank Co. Ltd is a mid-sized bank with sound operations and large range of banking services. In 1Q 2008 its revenue was RMB 8.04 bln, an increase of 52% YOY, and its net profit was RMB 2.81 bln, an increase of 187.4% YOY. Following the unification in 2008 of enterprise income tax for domestic and foreign companies, the company saw a sharp decline in effective tax rate in 2008, which will boost its net profit.

The stock fluctuated recently near its MA 250, showing it had gained strong support. The stock is expected to perform well along with the rest of the banking sector. Investors are advised to pay close attention to the shares of the bank.

Source: China Securities Journal

Date: 22 May 2008

CN01/MZ/BT/KM