Announcement: It is expected that 1H08 net profit will surge 70%-75% yoy, mainly due to expended scale of production and distribution. 1. Affected by natural disasters, Q1 net profit grew only 20.98%, while growth rate in Q2 remained 83%-90%. 2. Price hikes could hardly offset the increasing costs. Earnings rose thanks to the expected growth rate of 20% in production and distribution, slightly lowered cost rate and taxes. Investment highlights: (1) Central region. ① with the rapid growth of fixed assets investment and the elimination of backward production capacity, supply and demand were sound in the central region. ② 5 production lines under building or to be built will be put into operation around early 2009; According to the plan, market share of the company in Hubei Province will reach 40%-50% by 2010. (2) Enter the market in Sichuan Province and benefit from post-disaster reconstruction. (3) Create an industrial chain of aggregate-cement-commercial concrete. 08-09 EPS is expected to be Rmb1.14 and Rmb1.74. OVERWEIGHT rating is unchanged. Risks: (1) Cost pressure; (2) Intensified regional competition.