CCB reported another quarter of decent operating results in 3Q18. Net profit came in at Rmb 67bn for the quarter, up 6.6% yoy. There are two positive surprises:1) mild NIM expansion, even though in a loosened monetary condition; and 2)stable NPL ratio and improved provision coverage, against market perception of weaker asset quality. We do not believe the underperformance of CCB’s share prices to the market in the past three months is justified. Buy maintained.