The 2020 annual results of the Company were lower than market consensus and our expectations. Total revenue of the Company increased 0,7% yoy to HK$40,93 billion; net profit attributable to shareholders decreased 13.8% yoy to HKS6.01 billion.
We expect total sales of gas in Hong Kong to be flat in 2021 as the impact from the COVID-19 pandemic remains.
We expect total sales of natural gas of the Company in mainland China to increase by about 5%-10% 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.
Gas dollar margin of the Company is expected to improve and remain stable in 2021. We expect natural gas supply status to be stable In 2021 and procurement costs of natural gas of the Company are expected to be stable.
Revise up the TP to HK$13.40, and upgrade to "Accumulate*'.