海尔电器（01169） 　　We continue to expect double-digit underlying earnings growth forHaier Electronics for 2H16. Haier Electronics reported a ~2% headlinenet profit decline for 3Q16 in line with JPMf. However, excluding nonrecurringgains, net profit growth exceeded sales growth of +5.4%. Weare currently forecasting underlying EBIT growth of 14.5% for 2H16and we leave our forecasts unchanged. 　　Manufacturers starting to highlight higher raw material prices as aheadwind going into FY17. Chinese manufacturers are confident intheir ability to pass on higher raw material prices through a combinationof higher prices and positive gross margin mix shift through sales ofhigher end products. Nevertheless, we would highlight higher rawmaterial prices as key area of downside risk to our margin forecasts