growth in topline and bottom line

I checked the past performance of China infrastructure machinery holdings (3339), the stock price has surged 400% last year. The one key performance of this company is a resonable topline growth can result a significantly higher bottom increase. E.g. in 2006 the sales increase 38%, the underlying profit increaed 109%. Again it's about the fixed cost and increase of gross margin.

Fixed cost may make the company more operationaly risky but it also give investor much better result of sales increase, because it will generate a much higher profit growth.

Company with very big sales and low gross margin may be a very good investment choice. A very slighly improvement in topline will give a huge return to investors.

Checks the past performance of companies and try to look for companies' performace has such parten i.e. resonable growth in topling result a massive increase in bottom line.