9M16 passenger volume steady; revenue growth accelerated 9M16 passenger departure volume fell 1% YoY (H116: -1% YoY), mainly on diversionof passengers to high-speed rail (HSR) and fewer visits to Hong Kong by mainlandtourists. In our view, most of the negative impact on the company's passenger volumefrom the launch of the Guangzhou-Shenzhen HSR (late 2011) and Xiamen-ShenzhenHSR (28 Dec 2013) has already materialized over the past four years, and we expectpassenger volume to remain stable in full-year 2016. 9M16 revenue was Rmb12.7bn,with growth accelerating to 12% YoY from 10% in H1, driven by other transportservices (+51% YoY). Railway transport services to become a new revenue growth driver Railway transport services include railway operation services and other services. Thesetwo categories generated H116 revenue of Rmb1.27bn/Rmb670m, respectively,accounting for 16%/8% of total revenue. This was mainly due to continuous growth inits volume of transport services provided for trains that transit via HSR lines inGuangdong province. Meanwhile, our statistics indicate that 1,200km of new HSRtrack will be added in Guangdong in the next 5 years, implying a 12% CAGR. Thisshould provide further impetus to the company's other transport services business,turning the segment into a new top-line driver. More positive on growth of transport services revenue; upgrading earnings Guangshen Railway provides transport services for the Wuhan-Guangzhou Railway,Guangzhou-Shenzhen-Hong Kong Railway, Guangzhou-Zhuhai Intercity Line, Xiamen-Shenzhen Railway, etc., covering a total track length of over 1,600km, which is likely tokeep rising. We believe the company's other transport services are reaching asignificant size and will maintain strong growth. Therefore, we estimate its othertransport services business to post revenue growth of 41%/7%/6% in 2016/17/18(from 4.2%/5.1%8.2%). Accordingly, our 2016/17/18E EPS rise 6.7%/4.9%/7.0%. Valuation: Rmb5.21 price target and Buy rating Our Rmb5.21 price target is based on DCF (WACC to 8.1% from 8.3%). We maintainour Buy rating. The stock is trading on 1.1x 2017E PB, lower than its historical average. We believe development of the other transport services business could become a newsource of sustainable growth.

Q: How did the results compare vs expectations? A: Q316/9M16 net revenue fell 4%/5% YoY, in line with our expectation (due to thedecline of ancillary services and delayed recognition of property sales). But 9M16 pre-xnet profit beat our expectation (due to lower than expected finance cost) by growing11% YoY, representing 81%/82% of UBS/consensus full year estimate. Q: What were the most noteworthy areas in the results? A: Truck traffic on Shanghai-Nanjing E'way showed two consecutive months of positivegrowth in Aug/Sept and management also highlighted traffic recovery on all otherexpressways. Rmb170m property pre-sale recorded in Q316, bringing unrecognisedproperty revenue to Rmb1.56bn. 9M16 finance cost dropped 37% YoY due to debtswap on the high-interest debt inherited from the two acquisitions in 2015. Q: Has the company's outlook/guidance changed?A : No guidance provided. Q: How would we expect investors to react? A: We expect investors to react positively to the strong result.

Industry competition stabilizing; prices gradually reaching a new balance Wangsu developed live-streaming CDN technology two years ago. Although its livestreamingCDN services were initially priced expensively, Wangsu has adjusted itspricing for such services this year in response to intensifying competition, aiming torapidly capture share in this space, particularly incremental demand. Currently, the livestreamingmarket's competitive landscape is starting to reach a new balance and, whileWangsu's pricing remains the highest, little room remains to continue cutting prices. Overall competitive advantages are still clear; still consolidating market share The company stated that, compared with other CDN vendors, Wangsu's advantagesmainly consist of the following: 1) The scale and stability of its platform, especiallywhen it comes to high-traffic events. 2) Prompt service, including rapid response tocustomer needs and effective solutions. 3) CDN service technology, accumulatedexperience and bespoke service. 4) As a third-party vendor, Wangsu does not haveissues with internal businesses that compete with its customers. Based on theseadvantages, we expect the company's market share to keep rising steadily, exceeding50% in 2016, despite fiercer competition. Steady progress for cloud security and overseas CDN projects 1) On the security front, particularly in terms of DDoS attack protection, the companypossesses good technology, related products and high-grade customers from thegovernment, financial and internet sectors. The company has also developed an antihackingproduct, for which it intends to step up marketing efforts for next year. 2) Itsoverseas CDN project is continuing to progress. The company estimates that its numberof overseas nodes will exceed 100 by end-2016 (end-2015: 60+). Meanwhile, it has setup subsidiaries in India, Ireland, the US and Malaysia to facilitate overseas businessdevelopment. Valuation: Maintain Buy rating and Rmb85.5 price target The market is fairly cautious on the overall CDN market and the company's potential tosustain rapid growth, whereas we expect the company's ~50% top-line CAGR toremain intact for the next two years. We maintain our Buy rating and DCF-derived pricetarget of Rmb85.5 (WACC 7.4%).

Q: How did the results compare vs. expectations? A: 9M16 revenue/profit was Rmb2.36bn/280m, up 76%/28%. Profit growth was inline with Huace's pre-announced 15-35% range. Q: What were the most noteworthy areas in the results? A: 3Q revenue was up 97% YoY to Rmb807m and profit was up 573% YoY toRmb8.7m due to the following: 1) 3Q was a revenue peak for the company's moviebusiness. In 3Q, Huace distributed 5 movies, realising box office of Rmb1.15bn vs. Rmb164m in 1H16. 2) However, 3Q gross margin was merely 17.6% vs. 33.5% in1H16. We believe Huace's 3Q revenue structure is more skewed to movies, rather thanTV dramas, while its movies did not deliver decent profitability despite high box office. Q: Has the company's outlook/guidance changed? A: No. Huace expects 7 TV drama projects to book revenue in 4Q, including a projectwith per-episode ASP over Rmb10m. This makes 4Q a peak season in terms of profit. Q: How do we expect investors to react? A: We expect the market to react neutrally to the results.

Q: How did the results compare vs expectations? A: Guangshen realised revenue of Rmb12.7bn (+12%) and net profit of Rmb1.1bn(+23% YoY) in 9M16. Q3 revenue increased 16% YoY, quicker than 10% in H116;overall gross margin is 13.4% in Q3, 0.3ppts higher than in H116. Net profit declined3% YoY in Q3, vs. 47% YoY growth in H116, mainly because of the high base causedby high non-operating income (gains from asset disposal) in Q315. Q: What were the most noteworthy areas in the results? A: Guangshen announced that its Board of Directors passed the resolution to acquireassets from Guangzhou Railway and its controlling subsidiaries for a total considerationof Rmb700m, mainly wagons and equipment but not including railway line assets. Webelieve the impact on Guangshen's operation is minimal. Q: Has the company's outlook/guidance changed? A: Management did not make any changes to its outlook. Q: How would we expect investors to react? A: We expect a neutral response given quicker revenue growth and slower net profitgrowth (compared with interim results).

Solid earnings growth Revenue in 9M16 came to Rmb7.12bn (+15.5% YoY), with net profit of Rmb1.0bn(+20.9% YoY) and gross margin of 38.4% (+1.4ppt YoY). Selling expenses grew26.7% YoY and administrative expenses grew 33.5% YoY (mainly on higher R&Dspending and employee salaries), while financial expenses had a net gain ofRmb63.83m. The overall expense-to-revenue ratio was 17.4%, up 3ppt YoY. Meanwhile, there was net operating cash outflow of Rmb250m due to more supportfor dealers and an e-commerce inventory build-up. However, the company hastightened control of its accounts receivable and we expect this situation to improve byyear-end. Steady operations in Q3; pay more attention to current retail sales from Q4 Q3 revenue reached Rmb3.24bn (+15.9% YoY) and net profit was Rmb490m (+20.5%YoY). Q3 YoY earnings growth accelerated from Q2 due to lower asset impairmentprovisions during the quarter (fell by Rmb110m), as the company started calculatingbad debt provisions for receivables aged 1-6 months based on a reduced rate (to 1%from 5%) starting in September. Gross margin improved 1.9ppt YoY and the overallexpense-to-revenue ratio rose 3.8ppt YoY. Semir's fast-fashion casualwear productshave now started launching. We estimate that retail sales will have a bigger impact oncurrent-period earnings from Q4 onwards, as the company's percentage of revenuefrom order fairs decreases. Channel mix improving; rapid growth in e-commerce We estimate that casualwear grew 7% YoY in 9M16, with the e-commerce channel animportant driver. Among casualwear stores, channel mix showed ongoingimprovement; store floor area has risen ~2% vs. the beginning of the year and thesestores have already entered more than 200 shopping centres. We believe sustainedrapid growth of the kids wear business (~25%) is mainly due to last year's acceleratedstore count expansion and strong online growth. We estimate that e-commerce, apriority development area for the company, had revenue growth of over 90% in 9M16. Valuation: Rmb16.65 price target; Buy rating Our price target is based on DCF and assumes a 7% WACC. We have a Buy rating.

Q316 net profit in line with our expectation The company posted Q316 net profit of Rmb10bn and EPS of Rmb0.08, in line with ourexpectation. Average crude price was US$45/bbl in Q316, basically flat QoQ. Chemicalengineering and marketing business saw QoQ improvement in earnings, and upstreamearnings dropped slightly. What is the most noteworthy in the results? In Q316, the company benefited less from inventory income resulting from crude priceincreases; we believe its Q316 earnings could basically represent its normal profitabilitywhen crude price is at US$45/bbl. If crude price continues to rise, we think upstreambusiness still has significant room to increase earnings. Q316 net profit came in atRmb5.8bn, thanks to strong downstream demand, mid-to-low oil prices, strong PPprices and continued improvement in alkene's earnings. In terms of marketing business,the company's per-ton earnings improved slightly QoQ in Q316, benefiting from lowwholesale price for refined oil. When crude oil prices are relatively stable, thecompany's refining business could realize a gross profit of US$3.4/bbl, which weattribute to actual earnings improvement in a thorough implementation of premiumquality at reasonable prices. Our EPS estimates may have upside risks Our EPS estimates may have upside risks, as the company still achieved 5.8%annualized ROE when crude oil price was at US$45/bbl, thanks to its advantages inbusiness integration. We expect the company's EPS to increase by Rmb0.06/share foreach US$10/bbl increase in crude prices. Valuation: price target of Rmb7.15, Buy rating We believe overall investor reaction will be lacklustre in the short term, mainly asearnings expectation for the company needs to be driven by oil prices. Currently, theintrinsic value of its upstream business is still below UBS's estimate of US$60/bbl for2017 crude prices. Our price target is based on 14.3x our 2017 PE estimate.

Better management efficiency led to a major drop in expense ratios In 9M16, revenue came to Rmb25.5bn (+63% YoY), net profit attributable to theparent was Rmb1.7bn (+106% YoY), and EPS was Rmb0.38, in line with our estimatebut higher than consensus. 9M16 gross margin was 29%, down 1ppt from 9M15.However, a noticeable improvement in management efficiency caused the ratio ofselling, administrative & finance expenses to revenue to fall sharply, to 6.3%, down5.8ppt from the same time last year. As a result, net margin attributable to the parentrose to 6.7% despite a 41% YoY fall in net investment income. 9M16 sales grew 84% YoY 9M16 sales were Rmb71.9bn and GFA sold was 4.54m sqm, up 84% and 58% YoY.ASP rose to Rmb16k/sqm. September sales came to Rmb11.2bn with GFA sold of 620ksqm, up 73% and 36% YoY, respectively. Gemdale's sales growth visibly outpaced theindustry, as its projects are concentrated in tier 1 and 2 cities. Land purchasing stayed cautious 9M16 land purchases were Rmb13.6bn, amounting to GFA of 2.64m sqm, down 32%and 16% YoY, respectively. Notably, Gemdale was the only leading property developerto reduce its land purchases. The company now has Rmb21bn of cash and equivalentson its books and its short-term solvency ratio has risen to 1.8. The company intends tohold onto its cash and wait for a correction in land prices, and we look favourably onthis sound approach to operations. Valuation: Maintain Buy rating and Rmb17.59 PT Our 2016-18E EPS are unchanged at Rmb1.23/1.31/1.35. The current share priceimplies 9.6x 2016E PE and represents a 30% discount to NAV. We derive ourRmb17.59 price target based on 14x 2016E PE. We are positive on Gemdale's prudentfinancing and land purchase policies and operating strategy of aggressive new-startsand sales. We maintain our Buy rating.

Q: How did the results compare vs. expectations? A: In 9M16, Inovance posted revenue of Rmb2.45bn (up 31.1% YoY) and net profit ofRmb690m (up 17.5% YoY). Q316 revenue/net profit came in at Rmb990m/Rmb300m,up 30.2%/17.3% YoY, respectively. Impacted by change in product mix and intensifiedcompetition, Inovance's gross margin declined 2.6ppts YoY to 47.8% in Q316. Q: What were the most noteworthy areas in the results? A: Various businesses were growing well in Q1-Q316: general low-voltageinverter/general-purpose servo system/control-related products' revenue grew38%/53%/40% YoY, respectively; NEV electric motor controller revenue grew c30%YoY; rail traction system revenue grew 12x YoY, mainly due to Jiangsu Kingway'sconsolidation into the company's financial statement. Q: Has the company's outlook/guidance changed? A: The company is optimistic about growth potentials of its general-purposeautomation business, new-energy logistics trucks and passenger cars. Q: How would we expect investors to react? A: Results in line with its preliminary earnings announcement; we expect a neutralinvestor reaction.

Q: How did the results compare vs. expectations? A: 3Q revenue/profit was up 61%/16% YoY to Rmb984/145m. 9M revenue/profit wasup 34%/15% YoY to Rmb2.5bn/438mn. That was in line with pre-guided 9M bottomlinegrowth of 0-30%. Q: What were the most noteworthy areas in the results? A: Key points: 1) revenue growth accelerated notably from 6%/34% in 1Q/2Q, drivenby new launches of toy products; 2) gross margin contracted 5ppt YoY to 52% due toproduct mix changes; and 3) operating profit growth reached 34%. Net profit growthwas far lower than the top line, as the tax rate was 17% vs. 2.7% in 3Q15 due to alower tax refund. Q: Has the company's outlook/guidance changed? A: We remain optimistic about Alpha Group, especially its earnings outlook in moviemonetization. Q: How would we expect investors to react? A: We expect the market to react neutrally to 3Q earnings.

Q1-Q316 results in line with our expectations Q1-Q316 revenue/net profit attributable to the parent rose 2%/22% YoY toRmb25.5bn/4.6bn, in line with our expectations. Meanwhile, gross margin/net marginattributable to the parent stood at 46%/18%, up 9ppts/3ppts YoY. The notable grossmargin expansion was mainly attributable to surging booked revenue in the highermarginindustrial park segment. We believe the company can maintain its gross margingoing forward, given that property prices are growing at a similar pace to land prices inareas surrounding Beijing, where its industrial parks are. Industrial park/property segments posted strong sales growth The industrial park segment booked revenue of Rmb12.5bn (+90% YoY) in Q1-Q316,property sales of Rmb76.3bn (+102% YoY) and sold GFA of 7.31m sqm (+58% YoY). With CFLD investing in Gu'an/Dachang industrial parks, the industrial park segmentshowed strong booked revenue growth. Meanwhile, helped by Beijing-Tianjin-Hebeiintegration and implementation of the plan to make Tongzhou a sub-administrativecentre for Beijing, housing prices rose strongly in cities near the Chinese capital (overallASP >Rmb10k/sqm), where 90% of the company’s saleable projects are located. Basedon a sell-through of close to 100%, we expect the company’s property segment to postfull-year sales of Rmb90-100bn. International business expanded into Egypt and Vietnam On 10 October, the company and Egypt's housing ministry signed a frameworkagreement to explore joint development of the country's ~60 sq ft new administrativecapital (35km from Cairo) project phase II, with plans to build a city integratingindustrial and environmental functions. On 20 September, the company and TinnghiaCorporation, a Vietnamese SOE, inked a memorandum of understanding to explorejoint development of ~1,765 ha of land in East Saigon New City and Ong Keo IndustrialZone managed by Tinnghia on behalf of the Vietnamese government. The company'sinternational business has therefore made progress in another two countries as part of"One Belt One Road" in addition to India and Indonesia. Valuation: Maintain Buy rating and Rmb38.85 price target We maintain our 2016-18E EPS of Rmb2.35/2.72/3.04. The stock is trading at 12x2016E PE. We maintain Buy given our positive views on property markets near Beijingand the company's internationalization strategy. We derive our PT by applying 12x/25x2016E PE to the company's residential/industrial park development segments.

Q: How did the results compare vs expectations? A: Q1-Q316 revenue was Rmb1.24bn (+8.4% YoY) and net profit attributable to the parent was Rmb305m (+37.8% YoY). In Q316, because the consolidation of Xianqiang Pharmaceutical was complete and no longer had an impact, revenue rose 8.5% YoYand NP attributable to the parent rose only 13% YoY. Q1-Q316 revenue and NP were in line with our expectations, as they equal 78% of our full-year estimates. Q: What were the most noteworthy areas in the results? A: Q1-Q316 R&D spending grew 79% YoY to Rmb127m, or 15% of revenue, a leading percentage among pharmaceutical companies. Most of the spending went to new product R&D projects. The company is in cooperation with WuXi AppTec to develop new products, which should further expand its product pipeline. Q: Has the company's outlook/guidance changed? A: We expect the company to maintain steady earnings growth from Q416 to 2017. The company guided that 2016 full-year net profit growth would be in the range of 20-40%, implying net profit of Rmb356-415m. Q: How would we expect investors to react? A: We expect a neutral response from investors to the in-line earnings.

Net profit up 23% YoY, higher than expected Hisense recorded revenue of Rmb22.1bn (-0.2% YoY) and net profit attributable toshareholders of Rmb1.14bn (+22.8% YoY, +27% YoY excluding one-offs) in 9M16,with basic EPS of Rmb0.87, slightly higher than consensus and our expectation, mainlybecause its net margin has risen rapidly. Net operating cash flow came to Rmb3.9bn in9M16, up 500% YoY. Q316 revenue back to positive growth driven by exports Hisense recorded revenue of Rmb8.79bn in Q316 (+8.1% YoY) after declines in H116,mainly driven by the sharp rise of exports (up 30%+ YoY based on our estimation;Hisense's export volume increased 38% YoY in July – August according tochinaiol.com), while the magnitude of domestic sales declines narrowed benefitingfrom strong domestic property sales in H116. Looking into Q416 and 2017, we believeexports will continue to increase rapidly: 1) LCD panel capacity is moving into China,providing a favorable TV supply chain; 2) Euro Cup sponsorship significantly improvedHisense's reputation in overseas market. We believe domestic sales growth maycontinue to recover over the next three quarters driven by property sales, but could benegatively affected in H217 by the property purchase restrictions. Better-than-expected net margin improvement on good selling expense control Hisense's gross margin was 16.3% in Q316, 0.7ppts lower than Q315, mainly becauselow-margin export business accounted for a much higher share (30% vs. 25% in Q315)in total revenue. Selling expense ratio declined 1.6ppts YoY in Q316 since sellingexpenses are relatively low for export segment, resulting in a higher net margin of4.55% (+0.9ppts YoY). We believe with one of the best operations in the domestic TVindustry, Hisense should be able to absorb the recent panel price rise. In addition,higher exports should increase forex gains given continual CNY depreciation. Thecompany's activated smart TV users are now close to 20m. We estimate smart TVoperation will contribute Rmb150m revenue in 2016, not particularly high but stillmeaningful given the profit contribution. Valuation: Maintain Buy rating and PT of Rmb23.5 We maintain our EPS forecasts and DCF-based PT of Rmb23.5 (WACC=8.4%). We alsomaintain our Buy rating.

Revenue growth fell in Q3 Salubris posted Q1-Q316 revenue of Rmb2.83bn, up 10.19% YoY. The growth ratewas down 4ppts sequentially. Revenue rose 3% YoY in Q3, confirming a trend ofslowing revenue growth. We believe the company is at an important stage in itsproduct mix adjustment, with big sales and stable growth for its core Talcom product. IfTalcom re-enters the Guangdong market, it would add incremental volume. Expectations for the company's revenue growth are built more on a ramp-up in secondlinedrug sales. Gross margin expanded slightly YoY in Q1-Q3; expenses under control Q1-Q316 gross margin edged up 0.5ppt YoY to 74.35%. Expenses were kept undercontrol, with the expense ratio down 0.4ppt YoY. Meanwhile, net profit jumped12.3% YoY, a slight pick-up from Q1-Q2, due to increased government subsidies. Netoperating cash flow increased 66.88% YoY. Stepping up acquisitions to build multi-product platform The company has stepped up acquisitions, as evidenced by the recent week'sannouncements of investments in Keyidun Biomedical, Salubris Biotherapeutics, Inc.,Zhongke Health and Yalun Biotech (Beijing). Those investments were mainly made toacquire/raise new capital for products under R&D and bolster the company's "drug,equipment and overall solution" presence, laying the foundation for long-term growth. Valuation: Price target of Rmb40.66; maintain Buy Our DCF-based price target of Rmb40.66 (WACC 6.8%) implies 29/24x 2016/17E PE. We maintain our Buy rating.

Q316 earnings maintained strong growth Q1-Q316 revenue was Rmb2.97bn, up 43.5% YoY, and net profit was Rmb410m, up48% YoY, better than we expected. Gross margin contracted 1.1ppts YoY to 36.4%. The overall expense ratio was 17.6%, down 1ppt YoY. Q316 maintained rapid growth,with revenue up 42.7% YoY and net profit up 48.1% YoY, close to the pace witnessedin Q216. The YoY gross margin contraction stemmed from the increased weighting ofthe low-margin kitchen cabinet business and the c5-10% rise in raw material prices thisyear. The company offset some of the pressure by increasing the utilization of boardmaterials, resulting in a net impact of -0.5ppt YoY on the gross margin of the wardrobebusiness. Wardrobe business saw increases in order volume/basket size The company's wardrobe business posted Q1-Q316 revenue growth of 33% YoY,driven by a 15% YoY increase in basket size and a 14% YoY increase in the number ofcustomers to 328k. In order to improve the operational efficiency of dealer stores, thecompany strategically focused on encouraging its dealers to expand the basket size,with more customers choosing custom-made cabinets and third-party home productsother than wardrobes. As of end-September 2016, the company's store count was1,750, and it could reach 1,800 by year-end, as it plans to add 150 stores in 2016. Kitchen cabinet business's gross margin improved Schmidt's Q1-Q316 revenue was Rmb235m, or 7.95% of total revenue. The businesscontributed Rmb125m to Q316 revenue, with a net loss of cRmb88m. It has opened450 independent specialty stores, with a target of 500 by year-end, and plans to reach800 stores next year. Due to rapid growth in kitchen cabinet sales, Q316 gross marginimproved from -9% in H116 to 9%. The company expects the kitchen cabinet businessto make a cRmb50m loss in full-year 2016 followed by a modest profit next year. Valuation: Maintain Buy rating, Rmb66.80 PT Our DCF-based price target of Rmb66.80 assumes 7.0% WACC.