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Strong Earnings Outlook Investment Thesis: We maintain our BUY rating on Hundsun Technologies and raise our target price from Rmb64.40 to Rmb107. We roll forward our valuation from 60x FY18 to 76x FY19 PER on our new forecasts, the average for the domestic peer group on Wind-consensus estimates, as Hundsun is becoming a fully integrated financial technology (fintech) service provider like global peers such as Thomson Reuters (TRI US). The stock has risen by 73% in the past three months, outperforming the Shanghai Composite Index by 28ppt, which we attribute to rising risk appetite in the market and Hundsen’s improving ear nings. On 4 April 2019, the company announced preliminary Q1 FY19 NP of Rmb390–415mn, up by 580–623% YoY, which it attributed mainly due to fair-value gains from adopting new accounting standards. Excluding this we estimate that Q1 FY19 NP ro
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