As its 2007 Annual Report showed, the total annual operating income was 8.484 billion yuan, an increase of 116.0 percent yoy; operating profit: 1.606 billion yuan, an increase of 126.2 percent yoy; net profit attributable to the parent company: 819 million yuan, an increase of 105.3 percent yoy; diluted EPS: 1.64 yuan; distribution plan: 2 yuan (before tax) in cash for each 10 shares. The substantial increase was mainly due to the growth in electrolytic aluminum output and sales as well as strong demand in the coal market. In 2007, the company merged accounting statements of Shenhuo Aluminum (45.05% holdings) which had the capacity of 200,000 ton electrolytic aluminum and a self-owned power plant of 500,000 kilowatt capacity as well as Qinao Aluminium (70% holdings). In 2008, output of electrolytic aluminum will rise by over 90,000 tons which will lay a foundation for growth of earnings. In 2009, the company’s coal mine under construction will be put into operation and will see production doubled. EPS is expected to be 2.21 yuan in 2008 and 3.02 yuan in 2009 with the corresponding 25.57xPEG in 2008. "Overweight" rating is reiterated.