The 2017 interim results of the Company were generally in line withmarket consensus and our expectations. Total revenue of the Companyincreased 8.96% yoy to HK$ 15.43 billion, net profit attributable toshareholders increased 3.26% yoy to HK$ 4.47 billion.
　　Maintain operating profit assumptions unchanged, contributed by HongKong gas business. The gas business of the Company in Hong Kong wasrather stable and the sale of gas and cooking sets in Hong Kong in the firsthalf of 2017 was generally in line with our estimation.
　　Revise up natural gas sales assumptions. National policies onenvironmental protection, accelerated execution on “coal-to-gas” projects forlocal governments and sufficient gas supply all combined to stimulate gasconsumption.
　　Revise down gas dollar margin assumptions slightly due to morecompetition in the industrial sector and customer group mix change.
　　We expect the gas dollar margin of the Company to remain at a steady levelin 2017-2019 under new pricing mechanisms.
　　Maintain the TP at HK$ 17.97 and maintain “Buy”。