Net profit in 2020 was down 10.6% YoY to HK$4,510 mn, missing our expectation. During the reporting period, revenues from water resources, property investment & development and road & bridge went up YoY by 37,2%, 79.5% and 39.1%, respectively, to HK$12,99 bn, HK$7.08 bn and HK$1.07 bn. While sales from the other 3 business segments experienced a decline. The sales from water resources and property investment & development business segments made up 56.1% and 30.5% of the total revenues in 2020, respectively. Despite the earnings decline, the Company raised its full-year dividend payout ratio in 2020 to 85.4% or HK$0,5894 in dividend per share, up by 2.0% YoY.
　　We raise our earnings estimates from 2021 to 2023 amid assumption of recovery on all pandemic-stricken business segments and continued growth in property development and water segments. Aggregate revenue from the non-core assets of GDI is projected to grow YoY by 31.7%/ 6.0%/ 4.0% from 2021 to 2023. respectively. Total sales from water and property segments are set to represent 86.0%/ 86.9%/ 87.9% of total revenue of GDI from 2021 to 2023, respectively. Overall, we expect total revenue of GDI to grow YoY by 26.0%/ 13.5%/ 12.8% from 2021 to 2023, respectively. Our revised EPS estimates from 2021-2023 are HK$0,890/ HK$1.127 respectively.
　　We maintain the investment rating of *'Accumulate" and our TP of HK$17.35. We remain positive on the outlook of GDI and expect recovery to take place in 2021. The TP corresponds to 19.5x/ 17.2x/ 15.4x 2021-2023 PER or 2.5x/ 2.4x/ 2.3x 2021-2023 PBR.