Due to exchange gains, lower financial expenses and lower income tax expenses, the company's mid-term results in 2017 were higher than our estimates. The company's revenue rose 8.2% year-on-year to HK $1.17 billion, while shareholder net profit increased 129.3% to HK $179.3 million.

Keep the company's natural gas sales assumptions unchanged. The company expects natural gas sales to grow by 20 per cent to 756.3 million cubic meters in 2017, and the gas transmission business is also expected to grow significantly.

Lower the assumption of the price difference of the company's gas sales. Natural gas sales of steel pipes in Tianjin have not returned to the normal level, which has a negative impact on the company's average gas price difference. In addition, in order to promote the use of natural gas, the price sold to "coal-to-gas" users is usually lower.

Raise the revenue assumption of the connecting business. The company plans to connect 180000 new residential users in 2017, an increase of 18% over 2016.

Maintain the company's target price at HK $3.54 and maintain its "buy" rating.