The 2018 interim results of the Company were lower than marketconsensus and our expectation. Total revenue of the Company increased27.4% yoy to RMB 9,329.4 million, net profit attributable to shareholdersincreased 0.5% yoy to RMB 1,093.4 million.
Revise down output assumptions of industrial aluminum extrusionproducts, but maintain output assumptions of other aluminum productsunchanged. We expect the output of aluminum alloy formwork of theCompany to continue to grow in 2018 and the flat-rolled production line isexpected to contribute about 200,000 tons in output of aluminum plates.
Revise up processing fees of aluminum extrusion products, but revisedown processing fees assumptions of aluminum flat-rolled products.The Company holds great competitive advantages in the production ofaluminum extrusion and flat-rolled products.
Revise down TP to HK$ 5.25, but maintain "Buy".