The 2019 interim results of the Company were higher than marketconsensus and our estimations. Total revenue of the Company increased17.8% yoy to HK$34.23 billion and net profit attributable to shareholdersincreased 11.2% yoy to HK$4.75 billion.
Revise down gas sales assumptions of the Company. We expect totalsales of natural gas of the Company to increase by 5%-10% in 2019. Weexpect total sale of natural gas of the Company to record moderate growth in2019-2021.
Maintain gas dollar margin assumptions of the Company unchanged.
The Company was less impacted by higher gas procurement costs in 1H19due to its unique locations and customer mix. We expect gas dollar margin ofthe Company to be stable and improve slightly in 2019.
Revise up profit assumptions of beer business, maintain profitassumptions of other business unchanged. We expect product mix ofbeer business to continue to improve in 2H19 and we revise up profitassumptions of beer business. We expect net profit contributed by waterbusiness to maintain fast growth.
Revise up the TP to HK$56.48, and maintain "Buy".