Investment grading: based on company’s current 8.4 billion RMB MV, its estimated shareholderattributable net profit of CNY 205 Mn for year 2016, CNY 343 Mn for 2017 and CNY 428 for 2018would respectively imply a P/E ratio of 41x/24x/20x. We maintain “Outperform” rating for thecompany.
   
Potential risk: Private placement progresses slower than expected, integration of purchased items isweaker than expected.