The long-term winner of SOE reform gets tested 1H16 results slightly behind as solid growth from MUs and Metro offset by locomotive and freight wagon weakness Strong demand & rising margins Results inline. Trends point to improving China gas business Expect re-rating to continue; Raise PT to HK$6.5 Key takeaways from 1H16 results briefing Lifting PT to HK$45–Strong 1H16 performance but what's next? 1H16 results first take - record margins boosts profits Lifting PT to HK$6.5: Feedback from investor meetings – some stabilization and return to growth 1H16 results beat by 5%