Pls see attached the full PDF research report, below is a highlight:
 
Key Points:
◆       Q3 in line with our forecast. The company reported total revenue of Rmb780mn in Q3, representing YoY growth of 36.8% and QoQ growth 6.1%, basically in line with market consensus and our forecast of Rmb767mn. The company also reported net profit of Rmb308.6mn, representing YoY growth of 48.9% but QoQ decline of 22.2%, in line with our forecast of Rmb298mn. EPS was Rmb6.1cents. The QoQ decline mainly resulted from foreign exchange loss.
◆       Major initiatives aim to face challenge from macro-economy. The company announced the Gold Supplier Starter Pack, a new entry-level product priced at Rmb19,800 for export suppliers in Greater China. A product this cheap has the advantage of being able to attract new users, but it will possibly draw customers away from the existing Gold Supplier package. The company also announced its Quality Supplier Program and a US$30mn marketing campaign.
◆      Stock buy back plan up to HK$2bn.
There is no big adjustment to our 2008 forecast. However, we cut our 2009 revenue forecast from Rmb3,929mn to Rmb3,556mn and cut our net profit forecast from Rmb1,747mn to Rmb1,327mn. EPS forecast for 2009 is HK$0.3. We cut our target price from HK$14.38 to HK$5.96, representing 20x 2009 forward looking P/E.
 

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