As its 2007 Annual Report showed, the full-year income of the main business was 3.397 billion yuan, up 33.82 percent yoy; operating profit: 424 million yuan, an increase of 26.88 percent yoy; net profit attributable to the parent company: 321 million yuan, up 29.14 percent yoy; diluted EPS: 0.90 yuan; distribution plan: 2 yuan (before tax) in cash for each 10 shares. In 2007, sales revenue of forklifts was 2.487 billion yuan, up 32.36 percent yoy, accounting for 74.1 percent of the total sales income. With the rising cost of raw materials, gross margin of forklifts dropped by 1.17 percent. Gross margin of loaders has improved and in the future it is expected to break even. In the future, forklifts, loaders and heavy equipments are expected to drive the company's growth as the troika. We expect the net profit of 2008 will rise by 31.25 percent. EPS is forecasted to be 1.18 yuan in 2008 and 1.50 yuan in 2009. "Overweight" rating is reiterated.