The 2021 annual results of the Company were lower than market consensus and our expectations. Total revenue of the Company increased30.9% yoy to HKS53.56 bilion; net profit attributable to shareholders decreased 16.5% yoy to HKS5.02 billion.
We expect total sales of gas in Hong Kong to be flat in 2022 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 12% in 2022. We expect China's natural gas consumption to maintain fast growth in 2022 and the Company to grow faster.
Gas dollar margin of the Company is expected to decline slightly in2022 due to higher gas price. We expect gas dollar margin of gas distribution companies to remain under pressure in 2022 and decline slightly.
Revise down the TP to HK$10.50, but maintain "Accumulate".