The company's 2018 interim results exceeded agreed market expectations and our estimates. The company's revenue increased 24.7% year over year to HK$19.24 billion, and shareholders' net profit increased 7.1% year over year to HK$4.79 billion.

Maintain the assumption that the Hong Kong gas business contributes to operating profit unchanged. We expect gas and stove sales in Hong Kong to remain stable in the second half of 2018. The Hong Kong gas market is a highly mature and stable market, making its consumer groups and natural gas consumption very stable.

Assumptions for an increase in gas sales. We expect the company's gas sales to grow 15%-20% in 2018. We expect the gas consumption of residential users to increase by around 10%-12% in 2018, but the gas consumption of industrial users is expected to grow even faster.

The assumption is that the spread of gas sales remains unchanged. We expect the company's gas price spread to remain stable in 2018. We believe gas purchase prices will be more stable in 2018, and the impact of changes in customer structure will be limited.

The target price was raised to HK$19.11 to maintain the “buy” rating.