The company's mid-term performance in 20017 is basically in line with market expectations and our estimates. The company's revenue increased by 8.96% year-on-year to HK $15.43 billion, while shareholder net profit increased by 3.26% year-on-year to HK $4.47 billion.

Maintain the assumption that Hong Kong gas business contributes to operating profit. The company's gas business in Hong Kong is very stable, and the sales of natural gas and stoves in Hong Kong in the first half of 2017 are basically in line with our estimates.

Raise the company's natural gas sales assumption. Environmental protection policies at the national level, local governments speeding up the implementation of "coal to gas" and adequate supply are all conducive to promoting natural gas consumption.

Due to the more fierce competition in the industrial sector and the change in the structure of customer groups, the hypothesis of price difference in gas sales has been lowered. We expect the company's gas sales spread to remain at a stable level from 2017 to 2019 under the new price mechanism.

Maintain the target price at HK $17.97 and maintain the "buy" rating.