Overall performance in the first half of 2017 exceeded expectations. Global Healthcare's revenue was 1,654 million yuan, up 32.2% year on year; net profit was 579 million yuan, up 46.3% year on year; and EPS was 0.34 yuan. The company's performance grew strongly, exceeding average market expectations. Net interest spreads and net interest spreads on financial leasing hit new highs in recent years. The company's interest-bearing assets and interest-bearing liabilities increased 32.1% and 33% year-on-year respectively in the first half of the year. The financial leasing business achieved revenue of 1.19 billion yuan, an increase of 30.1% over the previous year. The average yield on the company's interest-bearing assets fell slightly to 8.28%, while the average cost of interest-bearing debt was 4.64%, a significant decrease from the same period last year. The company achieved a net interest spread of 3.64% and a net interest spread of 4.57%, both hitting new highs since 2014, exceeding market expectations. Consulting services resumed high growth. In the first half of 2017, the gross profit of the company's consulting services was 352 million yuan, a year-on-year growth rate of 33.1%. This year, the company strengthened its team of consulting service professionals, with remarkable results. As one of the special services reflecting the company's expertise in the medical field, consulting services have obvious synergies with other businesses. The business has achieved high growth again, which is of great significance for the company to build a comprehensive medical service system in the future. Accelerated implementation of hospital management projects In the first half of 2017, the company's cooperation project with the First Affiliated Hospital of XJiao Tong University entered the accelerated implementation stage. In terms of supply chain, the company, together with the hospital, acquired Huahong, Shaanxi, and carried out preparations such as logistics and warehousing construction, platform construction, and staff training. It is expected that it will be able to undertake the hospital's supply chain business in the second half of the year. The tender for the International Dry Port Hospital has been completed, and the project will enter the final design phase in the future. Performance enhances confidence, maintains the “purchase” of highly educated and professional talent teams from rating companies, and creates the company's unique core competitiveness. Benefiting from this, the company has strong bargaining power in the financial leasing business. Corresponding to this is that the company's strong financing capacity makes the company's cost control excellent. In an environment of rising interest rates with rising financing costs, the company used performance to strengthen our confidence in its business model and core competitiveness. We maintained the company's “buy” rating and gave it a reasonable valuation of HK$9.9 for 6 months, corresponding to PE of 12.9, 10.3 and 9.1 times for 2017-2019, respectively, and 2.1, 1.8, and 1.6 times for PB corresponding to 2017-2019, respectively. Risk Warning 1. Adverse changes in health reform and PPP policies; 2. The company's hospital investment management business is not progressing as expected; 3. The rapid rise in interest rates has caused the company's costs to rise too fast.