The 2021 interim results of the Company were higher than market consensus and our expectations. Total revenue of the Company increased35.6% yoy to HK$24.73 billion; net profit attributable to shareholders increased 57.5% yoy to HK$4.20 bilion.

Maintain gas sales assumptions in Hong Kong. We expect total sales of gas in Hong Kong to be flat in 2021 as the impact from the COVID-19 pandemic remains.

Revise up the Company's gas sales assumptions in mainland China.

We expect total sales of natural gas of the Company in mainland China to increase by about 20%-25% in 2021. We expect China's natural gas consumption to resume double-digit growth speed in 2021 and maintain fast growth speed over the next 3-5 years.

Maintain gas dollar margin assumptions unchanged. Gas dollar margin of the Company is expected to remain stable in 2H21 as the gas price adjustment mechanism is much more mature now.

Revise up the TP to HK$14.25, and maintain "Accumulate".