Excerpts:

As its 2007 Annual Report showed, the full-year operating income was 999 million yuan, an increase of 17.11% yoy; net profit attributable to the parent company: 96.3577 million yuan, an increase of 50.51% yoy; diluted earnings per share: 0.58 yuan; distribution plan: 3 shares granted, 3 shares transferred and 1.0 yuan (before tax) in cash for every 10 shares. The company’s performance in 07 was basically in line with our expectations. It was mainly benefited from the steady growth of first-line products and sales increase of second-line products. We believe that the new drugs in the second-line will be still the main engine of growth for the company in the future. In 07, the company had a reform in marketing to strengthen management and strictly control costs and the rate of the 3 period costs declined by 4.23 percentage point yoy, which was the main reason for the company's profit growth exceeding its revenue growth. The company has constructed a strong product group currently and is promoting the sustainable development through marketing reform and cooperation with Sinopharm Medicine Holding. We maintain our previous forecast that EPS will be 0.85 yuan in 08 and 1.08 yuan in 09 with compound annual growth rate of 35%. "Buy" rating is reiterated.