Pre-2009 net profit increased 50% over the next few years the company Health and epitaxial growth potential is still large, 6-month target price: 53.79 yuan, more than a year fair value range of 56.0-70.5 million.

Hai Tong Securities wholesale and retail trade sector, principal analyst: Lu Ying, an analyst Pan He, Wang Li-ting

Event: The company expects its net profit in 2009 compared with 2008 growth of 50%. The company in 2008 net profit 608.55 million yuan, according to the pre-growing the company in 2009 net profit of 912.83 million yuan and above, EPS at 1.342 yuan or more. Company's announcement that its performance is mainly due to growth in the market a three phase in October 2008 put into use in 2009 full-year contribution to the performance of the net profit attributable to higher contributions.

Brief and investment advice. The performance of the company in 2009 Yejiyuzeng basically in line with our expectations prior to 1.384 yuan, we have maintained the company's 2010-11 earnings forecasts are as follows: 1.793 yuan and 2.494 yuan, net profit growth rates were 29.54% and 39.08% (We are the company's real estate business, the more conservative forecasts, but also did not take into account the possibility of the company's market price increases), company's growth speed and certainty of the company as both offensive and defensive investment products represented.

We believe that the valuation of the company is currently in a relatively low-lying land, continue to maintain "buy" rating, maintaining the 6-month target price of 53.79 yuan (corresponding to 2010 EPS by 30 times PE, which in fact is the company in 2011 all the assets of the whole years of contribution to the performance of the year). From the near term, the market had expected a test area of international trade if there is substantial progress, the company with a high tradition of Transmission and Distribution and so may be short-term share price catalyst. Terms from 2010, the company leasing the second half of three phases of two may also be a catalyst to enhance the performance and valuation.

We would also like to reiterate is this: If we simply rent price (we refer to is the current rent level of government pricing, rather than open up the market rental prices across the board level) corresponding to the value of its commercial property revaluation (without regard to corporate market business other than the business value) should also be 56.0-70.5 yuan per share, which reflects the company's three two-stage fully leasing business after the company's relatively conservative market value of our one-year target price given in (from continuing operations should enjoy a certain real estate business valuation, and in this valuation we have not considered).

Our recent trends in the company's main points.

(1) export-oriented small commodities, Yiwu import and export trade in 2009 maintained a growth, while relatively recent market boom. 2010 we expect this warming trend will continue, and, because of company varieties, the market is relatively fragmented, so the ability to mitigate volatility in different markets is very strong.

According to Yiwu Daily January 19, 2010 The ninth edition reported that the National and zhejiang.htm" target="_blank" title="zhejiang">zhejiang Province in 2009 Import and Export values are negative growth situation, yiwu city">yiwu city, the cumulative total import and export 2.36 billion U.S. dollars, up 12.9%; of these self - Camp exported 2.14 billion U.S. dollars, up 11.9%; self-imported 220 million U.S. dollars, up 24.1%. Pick-up in the second half of 2009, Yiwu's export situation is better, export more than 200 million U.S. dollars in the month of July, September, October and December, all concentrated in the second half of February and the market closed by the impact of the Spring Festival has become the annual export the lowest month since February, but rose gradually after the export. In the export object to the European Union and the strong growth in U.S. exports. yiwu export">yiwu exports to the EU last year, 470 million U.S. dollars, up 26.1%, accounting for 22% of export value; for U.S. exports 350 million U.S. dollars, up 21%, accounting for 16.5%. Affected by the crisis in Dubai, the UAE exports 150 million U.S. dollars, an increase of 2.26%, an increase of smaller, accounting for 7.1%.

Gray customs clearance by the Russian influence on the exports to Russia only 076 million U.S. dollars, down 33%, a decline of large, accounting for 3.6%.

(2) short-term and the next two years on the company's performance expectations. Company Appointment March 2 disclosed 2009 annual report, and according to the pre-conditions broadly in line with our previous growing expectations.

From the historical point of view, the distribution company has a good tradition, focusing on investor returns. 2010-11 years, we forecast the company's EPS were 1.80 yuan and 2.50 or so, we believe that companies can achieve this growth a strong certainty.

Read from the extension of market expansion, completed in October 2010 for leasing of the three two-stage in 2010 to contribute more than two months of gains (due to land has already begun pre-amortization, so the second phase of the net profit margin will be higher than a phase), can contribute the full year 2011 results, supporting the company in 2011, a more rapid growth. The bamboo grove park, Binwang market will become the company's expansion in 2011-12, an important Aspect-year extension. As the company's increase in the market, as well as a phased opening, the company lower the original price of the market the next few years the government pricing part of the rental price is still a ladder-related increases possible.

Final needs to be emphasized that we are now doing performance projections were not possible with these positive factors, the performance of support (for example, the enhanced cohesion of the market rental price increase, etc.).

(3) the development of other markets in Yiwu City as well as Hengda Group (Small Commodity City shareholders) status. Hengda Group In addition to listing the company's assets in other markets outside the categories of assets are still in the property rights, asset disposal process, we believe that in 2010 made progress in this process. After combing the completion of these markets, we do not exclude these markets are expected to cash acquisitions to enter the listed companies.

In addition, Yiwu City, may be the preparation of a Yixi materials market, if the division of labor from the industry point of view, this market led to the construction of Hengda Group, a great possibility.

In the long run, as well as from our Yiwu Hengda Group was established, and its positioning and the Commodity City judgment analysis, we believe that this market long-term support for small business operations have a greater positive significance. Yixi market will be mainly small commodity production of raw materials and machinery and equipment as the main trading commodities on the international trade city with the current business industry is a supplement, but also on the Hengda Group and Commodity City market, business expansion and expansion of the positive significance.

(4) The Commodity City in e-commerce, virtual and physical integration and other aspects of the market is still much room for development. Companies in the development of e-commerce has been very great importance, in the BtoB class business development strategies have some long-term planning. We believe that, thanks to the company's strong physical resources of the advantages of stalls, and possession of brand, reputation and so on, companies have the ability to tag standardization of BtoB and commodities to make a breakthrough. Small Commodity City venue nominal operating more than 170 million species of goods, accounting for all of the more than 220 million products for nearly 80%, and therefore do have standardized product identification unique advantage. If progress in this area, not just "Internet of things" concept truly meaningful in the real world manifestation of Commodity City market for enhancing the level of positive significance to the world's greater cohesion.

(5), Zhejiang Province, to promote the regional development planning in order to yiwu international t">yiwu international trade as the leading experimental area could be one of the important elements. According to our interpretation of some related news, we believe that this plan is currently in the Department of Commerce, Zhejiang Province, has been a certain level of consensus. We believe that, if the programs are implemented, to raise the status of Yiwu Commodity City, Yiwu Market">Yiwu Market, core competency and so on will greatly increase. From the long-term perspective, this International Trade City