Pharmaceutical: Gilead's acquisition of CAR-T-focused Kite Pharma will benefit Fosun andrelated plays    Gilead Sciences announced plans to acquire Kite Pharma for US$11.9bn in cash, representing a30% premium to the takeover target's share price. Similar to Novartis's recent FDA approval of itsCAR-T program in June, we expect companies with direct exposure such as Fosun Pharma andGenscript Biotech and precision-related healthcare A-share names to benefit and see more valuedrivers on additional news flow. We suggest watching Genscript Biotech in the short term.    BAIC Motor (1958HK, Under review): Strong results for Beijing Benz, while Beijing Brandand Beijing Hyundai record losses    BAIC Motor released 1H17results this morning. Revenue was up 36.1% YoY, gross profit rose62.2% YoY, OP was up 1.1x YoY, and the company’s total profit grew 14.2% YoY. However, profitattributable to shareholders dropped 59.1% YoY, mainly due to losses for the Beijing Brand andBeijing Hyundai. The losses at Beijing Hyundai will be a concern for the market and investors arelikely to be cautious on downward volatility. Own-brand losses are set to continue in 2H17, but shouldhopefully decrease with more expenses controls. Beijing Benz’s considerable earnings shouldcontinue in 2H17, peaking in 4Q17.    China Huarong (2799HK, Under review): Strong growth in 1H17; steady asset expansionexpected in 2H17    The company showed steady growth in its distressed asset management and asset managementsegments. An expected preference shares issuance in the second half should replenish its assetgrowth momentum and bring steady annual results. The declined annualized return from itsrestructuring business may have some negative impact on profitability. However, we believe thecompany will remain the most profitable AMC in China. Moreover, the inclusion of the stock into thestock connect program should promote its daily trading volume and support its valuation. Thecompany’s BVPS is likely to be enhanced when it becomes listed in the A-share market. Rating andTP under review.    CALC (1848HK, Under review): 1H17results underperform, more deliveries expected in thesecond half    1H17revenue rose 22.5% YoY on increased lease income from continued fleet expansion as wellas gains from the disposal of finance lease receivables. However, total expenses and lossesincreased by 32.4% YoY, meaning a rise in net profit of just 3.6% to HK$248.7m, below marketexpectation. The company delivered nine aircraft in 1H17, taking its fleet size up to 90as of end-June, and another 20aircraft are expected to be delivered in the second half. However, we expectfull-year profitability to deteriorate as interest expenses and depreciation will not improve, and asoperating lease income per aircraft has been declining.    Wisdom Education (6068HK, Buy): FY18student enrollment likely to beat our estimate;    maintain Buy    According to our channel checks, we think the student enrollment number for the 2017-18schoolyear is likely to beat our estimate of 41,515. We believe our existing estimate for student number isabove consensus and higher than management’s guidance of >40,000. We see this as a ST catalystfor the stock. Our TP is kept at HK$3.55, representing 20.5x FY18E P/E and based on 1.0x PEG(assuming 20.5% FY17-20EPS CAGR). Other catalyst: the inclusion of the stock into the SZ-HKstock connect list in the next review.    KWG Property (1813HK, Hold): Results in line with consensus, stock fairly valued    1H17contract sales rose 28% YoY, revenue increased by 44% YoY, gross margin remained flat at36%, and net profit rose 10% YoY. The results were in line with consensus. We expect EPS to growat a CAGR of 8% in 2017-2018. The stock is trading at 0.6x 2016NBV and 4.2x 2016P/E. As aregional boutique developer likely to see single-digit earnings growth, we think its valuation is fair.We maintain our Hold rating and target price of HK$6.00.

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