Results in line with expectations
　　1H17 revenue was HK$3.9bn, up 2% YoY; net profit wasHK$1.5bn, up 6% YoY to HK$0.88 per share. 1H17 net profitsaccounted for 48% of our full year estimate.
　　Trends to watch
　　Net profit growth driven by divestment of principalinvestment. 1H17 net profits up by 6% YoY (+HK$79mn).
　　Positive factors: divestment of several principal investments likeFocus Media and Changjiang Pharmaceutical drove realized gainsup by HK$935mn. Negative factors: 1) share of CES’s profitsdown by HK$178mn; 2) dividend income of CEB down byHK$160mn due to lower payout ratio (from 30% to 16%).
　　Strong AUM growth continued in 1H. AUM of fundmanagement business up by 22% HoH to HK$106.6bn, mainlydriven by growth of EBA Real Estate. In 2H, AUM growth ofHK$6bn is expected, making 2017e full year AUM growth 29%.
　　Drop in management fee no concern. Management andconsultancy fees down by 35%, mainly due to:1) accountingreasons (fee income from EBA Real Estate was not reflecteddirectly into revenue) and would have increased by 30% ifadding back; 2) funds raised in 1H have not been invested.
　　Earnings forecast
　　We maintain our earnings forecast for 2017 & 2018.
　　Valuation and recommendation
　　The stock is trading at 0.8x 2017e P/B. We maintain our BUYrating and HK$19.66 target price.
　　Risks
　　Worse-than-expected macro economy or SHCOMP movement.