China Stock Profile – Home Inns & Hotels Management Inc.

(HMIN)1

Statistics for HMIN:

P/E 128.8
Long Term EPS Growth 42%
PEG Ratio 3.04
Net Margin 8%
Average Rating Value 2.56
Average Rating Hold
Average Target Price 15.46
Current Price 17.39
Year to Date Performance 103%
Institutional Ownership 39.2%
Short Interest as % of Float 2.9%

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of HMIN

HMIN Company Profile

HMIN is involved in the development, lease, operation, franchise, and management of a chain of economy
hotels in China under the Home Inn brand name. In December 2008, its Home Inns hotel chain consisted of

1
By H.U.
326 leased-and-operated hotels, as well as 145 franchised-and-managed hotels in China. The company was
incorporated in 2001 and is headquartered in Shanghai, China.

Key Executives of HMIN

Mr. Nanpeng Shen , 41

Co-Founder, Co-Chairman and Member of Compensation Committee
Mr. David Jian Sun , 44
Chief Exec. Officer
Mr. James Jianzhang Liang , 39
Co-Founder, Independent Director and Member of Audit Committee
Ms. May Wu , 41
Chief Financial Officer and Principal Accounting Officer
Mr. Jason Xiangxin Zong , 44
Chief Operating Officer

Major Holders of HMIN

TOP INSTITUTIONAL HOLDERS

Holder Shares % Out Value* Reported

MAVERICK CAPITAL LTD. 3,027,771 8.50 $29,884,099 31-Mar-09
CITIGROUP INC. 1,994,516 5.60 $19,685,872 31-Mar-09
SCHRODER INVESTMENT
1,830,900 5.14 $18,070,983 31-Mar-09
MANAGEMENT GROUP
BROOKSIDE CAPITAL MANAGEMENT,
1,000,000 2.81 $9,870,000 31-Mar-09
LLC
Susquehanna International Group, LLP 936,412 2.63 $9,242,386 31-Mar-09
DEUTSCHE BANK
703,380 1.98 $6,942,360 31-Mar-09
AKTIENGESELLSCHAFT
TCW GROUP, INC. (THE) 697,335 1.96 $6,882,696 31-Mar-09
Credit Suisse/ 632,847 1.78 $6,246,199 31-Mar-09
GOLDMAN SACHS GROUP INC 577,183 1.62 $5,696,796 31-Mar-09
BNP Paribas Arbitrage, SNC 394,067 1.11 $3,889,441 31-Mar-09

TOP MUTUAL FUND HOLDERS

 Holder Shares % Out Value* Reported
Wells Fargo Advantage Small Cap
450,800 1.27 $6,973,876 31-May-09
Opportunities Fd
LORD ABBETT DEVELOPING GROWTH
310,594 .87 $4,279,985 30-Apr-09
FUND
SCHRODER U.S. OPPORTUNITIES FUND 128,200 .36 $1,766,596 30-Apr-09
TCW SMALL CAP GROWTH FUND 122,753 .34 $1,691,536 30-Apr-09
Powershares Exhg Traded Fd-Powershares
102,020 .29 $1,405,835 30-Apr-09
Golden Dragon Halter
Clough Global Opportunities Fund 92,986 .26 $917,771 31-Mar-09
Oberweis China Opportunities Fund 72,400 .20 $714,588 31-Mar-09
LORD ABBETT SECURITIES TRUST-
63,550 .18 $875,719 30-Apr-09
MICRO-CAP GROWTH FUND
MANAGERS SPECIAL EQUITY FUND 53,788 .15 $832,100 31-May-09
Managers Trust I-Managers Fremont Micro-
36,702 .10 $505,753 30-Apr-09
Cap Fund

Analysts’ Estimates

Current Qtr Next Qtr Current Year Next Year

Earnings Estimate
Jun-09 Sep-09 Dec-09 Dec-10
Avg. Estimate 0.13 0.19 0.36 0.55
No. of Analysts 3 3 7 8
Low Estimate 0.11 0.16 0.20 0.35
High Estimate 0.15 0.21 0.46 0.70
Year Ago EPS 0.08 0.12 0.36 0.36

Analysts estimate earnings growth for HMIN to be 52.8% next year.

Chinese Travel Outlook

Despite the global recession, hotel bookings and passenger volumes were up in China in 2009, with the
leisure travel market helping to bridge the gap. The Chinese government is helping out the travel industry
by promoting travel for the Shanghai World Exposition in 2010.

"Travel is one of the most important growth engines to drive the economic growth," Ctrip's co-founder and
chief executive officer, Min Fan said and continued by saying "The Chinese government made
extraordinary efforts to promote the tourism and to boost the economy."

China is in the midst of a travel boom as a growing middle class increasingly moves around the large
country for business and pleasure.

Ctrip is expanding its relationships with hotels and airlines in the region by for example, announcing that it
was almost doubling its stake in HMIN. Ctrip now owns 18.25% of HMIN shares.

Analysts think that there is potential for the Chinese travel business to gain from the more direct flights to
regional neighbors, such as Taiwan.
Headlines for HMIN

Home Inns & Hotels Management Inc. Earnings Call scheduled for Wednesday, August 5th.

HMIN Financial Statements

Income Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Total Revenue 257,922 138,365 71,055
Cost of Revenue 219,577 107,477 51,726

Gross Profit 38,345 30,888 19,329

Operating Expenses
Research Development - - -
Selling General and Administrative 26,355 16,267 9,774
Non Recurring - - -
Others - - -

Total Operating Expenses - - -

Operating Income or Loss 11,990 14,621 9,555

Income from Continuing Operations

Total Other Income/Expenses Net 11,838 (1,792) 627
Earnings Before Interest And Taxes 23,828 12,830 10,182
Interest Expense 4,124 983 787
Income Before Tax 19,704 11,847 9,395
Income Tax Expense 4,120 6,174 2,741
Minority Interest (746) (771) (645)

Net Income From Continuing Ops 14,838 4,902 6,009

Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 14,838 4,902 6,009
Preferred Stock And Other Adjustments - - (2,072)

Net Income Applicable To Common Shares $14,838 $4,902 $3,936

Balance Sheet PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Assets
Current Assets
Cash And Cash Equivalents 89,182 238,046 97,129
Short Term Investments 14,657 - -
Net Receivables 9,777 4,779 1,893
Inventory 3,941 2,604 -
Other Current Assets 9,370 8,489 2,904

Total Current Assets 126,927 253,918 101,925

Long Term Investments - - -
Property Plant and Equipment 285,951 157,333 58,695
Goodwill 57,293 54,530 4,217
Intangible Assets 6,592 6,407 387
Accumulated Amortization - - -
Other Assets 4,863 9,334 535
Deferred Long Term Asset Charges 11,371 6,721 3,386

Total Assets 492,997 488,243 169,144

Liabilities
Current Liabilities
Accounts Payable 80,501 70,205 21,862
Short/Current Long Term Debt - 36,877 17,170
Other Current Liabilities 13,236 3,264 2,385

Total Current Liabilities 93,737 110,345 41,418

Long Term Debt 131,286 154,682 6,407
Other Liabilities 4,362 2,727 -
Deferred Long Term Liability Charges 25,182 16,710 5,672
Minority Interest 2,796 1,520 1,638
Negative Goodwill - - -

Total Liabilities 257,363 285,984 55,135

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 425 394 345
Retained Earnings 23,571 9,356 6,460
Treasury Stock - - -
Capital Surplus 204,310 186,843 104,204
Other Stockholder Equity 7,328 5,666 3,000

Total Stockholder Equity 235,634 202,259 114,009

Net Tangible Assets $171,749 $141,321 $109,405

Cash Flow Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06
Net Income 14,838 4,902 6,009

Operating Activities, Cash Flows Provided By or Used In

Depreciation 29,313 12,011 5,972
Adjustments To Net Income (8,954) 7,496 1,431
Changes In Accounts Receivables (939) (1,001) (763)
Changes In Liabilities 16,185 10,876 9,510
Changes In Inventories (1,083) (395) -
Changes In Other Operating Activities 2,950 (4,467) (1,404)

Total Cash Flow From Operating Activities 52,310 29,423 20,755

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (121,434) (63,375) (27,245)
Investments (14,657) - -
Other Cashflows from Investing Activities (5,251) (20,717) (150)

Total Cash Flows From Investing Activities (141,342) (84,092) (27,395)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (515) (257) (288)
Sale Purchase of Stock 714 50,556 83,365
Net Borrowings (41,613) 121,928 16,754
Other Cash Flows from Financing Activities 198 38 -

Total Cash Flows From Financing Activities (41,216) 172,265 99,831

Effect Of Exchange Rate Changes (9,604) (7,296) (896)

Change In Cash and Cash Equivalents ($139,852) $110,300 $92,295

Reference

Yahoo Finance
China Analyst