Dim Sum Express

Total net profit for the 79 companies that have issued a profit alert for 2016 represented YoY growthof 16.9-25%, in line with actual growth of 23.8% YoY in 9M16. 2016 earnings growth forecasted inthese profit alerts is in line with the strong sector business conditions seen during the year. It remainsthe government’s policy stance to maintain stable economic growth, which means the overall policyenvironment will remain favorable for the auto sector in 2017 and that sector business conditions arelikely to remain strong. We remain positive on auto names, especially undervalued blue-chips andfairly valued growth stocks.