Made in China:China Wind IPPs;HK Banks,1H17preview;New Oriental,Dahua,China Coal

NEA recently released 1H17 wind operation data, which suggests substantial curtailment reduction across the country and strong capacity discipline. As we put in China Wind/Nuclear IPPs - 1H preview; catching up in 2H (19 July), after underperforming HSCE by 10-22% in 1H, wind stocks' risk/reward look attractive now (6-10x FY17E PE vs. a 12-20% earnings 2017-19 CAGR) and share price performance may catch up in 2H. We recommend rotation to laggard wind names, including Longyuan, HNR, Fuxin. (Michael Tong - 852 2203 6167) .

    Benefiting from the higher rates in 1H17, the share prices of the HK banking sector have done well so far, rising 21% YTD, in line with MSCI HK. Heading into interim results, we expect fundamentals to look strong, helped by higher margins, better market activity, seasonally lower operating costs and benign asset quality. While core earnings are expected to improve 9% HoH (+11% YoY), we recently downgraded BoCHK to Sell as most of the positive catalysts are already in the price. We maintain our Sell call on BEA and Hold on HSB. DSB/DSF remain our only Buys in HK banks. (Franco Lam - 852 2203 6226) .

    4QFY17 revenue reported USD486mn, implying 23% YoY growth, beating the high end of company guidance (+18-22% YoY), and 2% above consensus. Non GAAP OPM improved 220bps YoY to 12.5%, 166bps better than consensus. Total enrollment growth was +37% YoY vs. +6% YoY in 3Q. K-12 enrollment growth accelerated to 51% YoY, with PoP Kids and U-Can enrollment delivering 51% and 50% YoY growth. (Continue on next page)