As its 2007 Annual Report showed, the annual revenue was 3.925 billion yuan, up 38.74 percent yoy; net profit attributable to the parent company: 136 million yuan, an increase of 22.29 percent yoy; basic earnings per share: 0.87 yuan and earnings per share after deducting non-recurring gains and losses: 0.83 yuan. Distribution plan: 0.50 yuan (before tax) for each 10 shares. Sales income of the main product grew rapidly. In 2007, the wire and cable products of the company saw a big increase of 47.67 percent yoy in revenue with the gross margin 14.51 percent, down 2.22 percentage points yoy. EPS is expected to be 1.36 yuan and 1.90 yuan with 20xPEG and 14xPEG respectively. Overweight rating is reiterated.