In 07, the company realized net profit attributable to the parent company of 496 million yuan, down 29.83 percent yoy; diluted EPS: 1.03 yuan; distribution plan: 5 shares converted and 4.70 yuan (pre-tax) for each 10 shares. In 07, pulverized coal washing achieved profit of 740 million yuan; gross margin: 41.8 percent; output: 3.62 million tons, down 2.95 percent yoy and 14.01 percent compared with the peak period in 05. The contribution to corporate profit was weakened. Gross margin of coal washing was 4.60 percent, down 13ppt yoy, mainly due to the unit production cost increase of coal, resulting in full-year profit decline. The company’s 08-09 EPS is forecast to be 1.41 yuan and 1.86 yuan respectively and Q1 report showed that EPS was 0.38 yuan, basically in line with our expectations. On April 26, the closing price was 38.16 yuan and respective dynamic price-earnings ratio is expected to be 27x and 21x. "Overweight" rating is given.