Dahua announced 1H17 prelim results on 25 July, revenue/NI of Rmb7.5 bn/Rmb983 mn (up 51%/39% YoY) were 12%/4% above our prior estimates, due to stronger sales in both China and overseas, in our view. 2Q17 single quarter revenue/NI grew 52%/41% YoY. Although we already held a bullish view on Dahua's share gain momentum (in both China and overseas), we see multiple/even better positive signals from the results and recent business developments. Solution wins in high-end and improving margins in channels are bright spots for the domestic market, while own brand sales in developing countries are major driver for overseas. We see major solution project wins in China, sales reaccelerating overseas, better visibility on the PPP business model, and solid quarterly earnings as major stock price catalysts. We raise 2017-19E EPS by 13%-17% for higher revenues. Our new target price of Rmb30.7 (vs Rmb20.50) is based on updated sector average P/E of 23x (from 20x) with EPS base rolling over half year. Maintain OUTPERFORM.