The 2016 interim results of the Company were lower than ourestimations, mainly due to higher financial costs and fair value changeof stock options. Total revenue of the Company declined by 2.8% yoy toRMB 7.68 billion, net profit attributable to shareholders decreased by 8.6%yoy to RMB 1.37 billion.
　　Maintain aluminum extrusion products output assumptions unchanged,but revise down aluminum plate output assumptions. We revise updeep-process aluminum extrusion product output assumptions as the outputincrease in 1H2016 was much faster than our previous assumptions. Thealuminum plate production line is still undergoing a debugging process andwe expect it to contribute around 60,000 tons of output in 2016.
　　Maintain processing fee assumptions unchanged. The processing fees ofaluminum products in 1H2016 were generally in line with our estimations, sowe maintain processing fee assumptions unchanged.
　　We believe that the reorganization plan is positive for the developmentof the Company. The transaction progressed smoothly and is in line with theschedule.
　　Maintain the TP of the Company at HK$ 5.50, and maintain “Buy”。