Investment Summary

• Exchange Loss Causes the Results of 2017Q3 to Decrease by 1.5%
• Core Profit Increase is Great, and Q3’s Net Profit Actually Rises by 20%
• Enhancing the Market Share and Better Sales Structure
• Overseas Business is Entering the Right Path, Global Expansion is being Continually Advanced

Investment Thesis

Stable position in the industry, the continuous optimization of product mix, and high dividend rate provide a greater margin of safety for the Company’s share price. The sound development of overseas business will bring high resilience of earnings, which is promising.

We maintain the “Accumulate” rating，with target price to be HK$ 34, equivalent to 16x  P/E for 2018.