In 07, the company achieved operating income of 1.04 billion yuan, up 89.0 percent yoy; net profit attributable to the parent company: 51.558 million yuan, up 66.1 percent yoy; earnings per share: 0.29 yuan, slightly higher than our forecast of 0.26 yuan. Distribution plan: 6 shares converted, 2 shares granted and 0.50 yuan (before tax) cash dividends for each 10 shares. The main reason was that income of the real estate business increased significantly. During the reporting period, operating income of the real estate business was 535 million yuan, an increase of 143.4 percent yoy; the proportion of it in the company's operating income was 51.3 percent, up 12.8 percentage points yoy. Income of the municipal construction was 3.7 billion yuan, up 46.0 percent yoy, the gross margin (13.49 percent) of which fell down to a great extent by 7.74 percentage points, mainly due to price hikes of the main raw materials such as steel and cement. However, the company's consolidated gross margin (23.94%) gained a slight increase of 0.16 percentage points yoy. In 06, the company set up "International Business Department" as well as a branch in Qatar and actively expended its overseas markets. The company's overseas business is expected to make breakthrough in 08. We maintain the forecast that diluted EPS will be 0.80 yuan in 08 and 1.02 yuan in 09. We are still optimistic about the company's future development and "overweight" rating is reiterated.