Guanghui Baoxin announced interim results 1H17. The company's total revenue increased 44.1% year on year to RMB 15.67 billion, and net profit to mother increased 521.3% year on year to RMB 40 billion, which is basically in line with our expectations. Due to differences in accounting categories such as new car decoration, etc., the gross margin of new car sales remained about 3.5% compared to the same period last year; affected by this, gross margin of 1H17 fell slightly by 0.2 ppts to 8.6% year on year. The business adjustment period has passed, and the gross sales margin of new vehicles remains optimistic. 1H17's new car sales/sales revenue increased by 56.6%/45.9% year-on-year to 46,000 units/RMB 13.89 billion (accounting for about 88.7% of total revenue); among them, due to differences in accounting categories such as new car decoration of different brands and good sales performance in the Japanese Sichuan region, the gross sales margins of luxury and ultra-luxury/mid/high-end brand new car sales were about 3.3%/4.9%, respectively. We believe that 1) the business docking/restructuring period between the company and Guanghui has passed, and the impact of the replacement of BMW's main models will gradually subside; 2) maintain the prospects for a steady recovery in the company's new car sales business, which is optimistic about the improvement in supply and demand in the luxury car market/driven by BMW's strong cycle (the gross margin of new car sales for 2017E/2018E/2019E is expected to be about 3.8%/4.2%/4.0%, respectively). The after-sales business is progressing steadily, and the derivative business is expected to achieve strong growth 1) After-sales business: 1H17's after-sales revenue increased 30.5% year on year to RMB 1.75 billion, and gross margin increased 1.6 ppts year on year to 47.6% year on year; it is expected to connect with Guanghui resource integration/collection and other systems or further boost its after-sales service scale and gross profit margin (expected to be about 48.0%/48.2%/48.3% for 2017E/2018E, respectively). 2) Derivative business: 1H17's automobile financial leasing revenue increased 6.7x year-on-year to RMB 21.88 million; benefiting from the sale and leaseback with Guanghui and the gradual expansion of the company's total interest-bearing assets, it is estimated that 2016-2019E financial leasing business revenue may achieve about 133% Cagr. 1H17's commission/agency revenue increased 83.6% year over year to RMB 30 billion; due to cooperation and collaboration with Guanghui, increased insurance coverage ratio and rebate rate/expansion of automobile finance penetration rate/improved ratio of used cars to new and used cars, etc., it is expected that the 2017 E commission/agency revenue may increase by about 70% (the overall derivative business of 2017E is expected to achieve strong growth of about 77%). Maintaining the purchase rating, we are still optimistic about the improvement of the company's fundamentals and long-term business collaborative release driven by the integration of Guanghui Resources. It is estimated that the 2017E/2018E/2019E fully diluted EPS will be approximately RMB 0.35/0.55/0.68, respectively. We raised our DCF target price to HK$5.01 (corresponding to approximately 8.0x 2018E PE); maintaining the buy rating given the 26.3% increase. Core risks suggest that BMW's replacement/new model launch and sales volume fall short of expectations; gross margin of new car sales is under pressure; integration with Guanghui's business falls short of expectations, etc.