Yichang today disclosed its financial report for the first quarter of 2011. The main contents are as follows:

In the first quarter, the company realized operating income of 437 million yuan, up 21.47% over the same period last year; realized operating profit of 11 million yuan, down 67.35% from the same period last year; realized net profit of 10 million yuan, down 63.62% from the same period last year; and realized EPS0.0242 yuan in the first quarter.

We expect the company's EPS over the next three years to be 0.434, 0.540 and 0.655 yuan respectively, corresponding to the current share price PE of 28.82,23.13 and 19.09 times, maintaining a "cautious recommendation" rating.