As its 07 Annual Report showed, the full-year income of main business was 1.842 billion yuan, up 17.71 percent yoy; operating profit: 97.5291 million yuan, an increase of 141.31 percent yoy; net profit attributable to the parent company: 94.0134 million yuan, up 170.15 percent yoy; diluted EPS: 0.26 yuan; distribution plan: 3 shares converted and 0.5 yuan (before tax) cash dividend for each 10 shares. Due to the substantial increase in exports of loaders, export sales income reached 421 million yuan, an increase of 136.09 percent, representing the proportion from 14 percent to 22.86 percent in machinery sales. As export gross margin was higher than that of domestic sales, gross margin of loaders was up 1.37 percent yoy, while gross margin of other products due to increased upstream costs experienced varying degrees of declines, consolidated gross margin of which was 11.6 percent, an increase of 0.3 percentage point yoy. Investment income contributed 79.18 million yuan to profit, an increase of 174.59 percent yoy and in the future, it is expected to contribute sustained profit to the company. Net profit of 08 is expected to increase by 14.8 percent; EPS is expected to be 0.29 yuanin 08 and 0.34 yuan in 09. "Overweight" rating is reiterated.