The company's suspension of capital increase in Bohai Securities is not conducive to the improvement of its short-term performance. If the company's capital increase to Bohai Securities is not taken into account, its earnings per share in 2008 and 2009 will drop by 0.05 yuan. We expect the net profit of Bohai Securities in 2007, 2008 and 2009 to be 1.084 billion yuan, 1.318 billion yuan and 1.361 billion yuan respectively. Taking into account the liquidity of the equity of Bohai Securities, its total market capitalization is 34.1 billion-39 billion yuan. In the short term, due to our previous estimate of 11.178 billion-12.784 billion yuan, the equity market value of the company has dropped to 9.187 billion-10.507 billion yuan, equivalent to 8.45mur10.01 yuan per share. The average value per share fell by about 2.70 yuan in a short period of time.

The suspension of capital increase in Bohai Securities does not affect the long-term value of the company. From the financial statements of Bohai Securities, ① has been profitable since 2005, but the current reform of the shareholding system of Bohai Securities has opened a channel for its future listing, which is conducive to strengthening its equity liquidity; ② has not given up the right to increase its capital, which has little impact on the long-term value of the company.

We downgraded the company's earnings per share to 0.41 yuan and 0.56 yuan in 2008 and 2009, while maintaining the valuation hub of 22.29 yuan and maintaining the "recommended" rating.