2016 result not a surprise given profit warnings was issued before.
　　China Travel HK reported its net profit of RMB 352 million （down by 74% yoy），which is in line with its previous profit warning announcement. As we havementioned before, the huge profit drop was mainly due to the disposed powerplant segment （it was disposed in 1H15, which was one-off）。 As a result, if weonly look at the core tourism business, its core tourism profit was RMB 413million, down by 33% yoy from last year’s RMB 625 million.
　　Dividend payout ratio increased to 62% from last year’s 39%
Management declared a special dividend this year although reported profitwas down by 74%. As a result, the dividend payout ratio rose to 62% from lastyear’s 39%. Total full year dividend was HKD 4 cents per share in 2016.
　　Analyst briefing at 10 am on March 30, 2017-new management will host
We believe 2016 may have been a year of bottoming with new managementcoming on board. The company will host its analyst briefing at 10 am onMarch 30 in CTS house. We believe new management will give us moreguidance on the 2017 outlook.