The 2019 annual results of the Company were generally in line withmarket consensus and our estimations. Total revenue of the Companyincreased 0.03% yoy to HK$66.78 billion and net profit attributable toshareholders increased 6.30% yoy to HK$8.05 billion.
We expect total sales of natural gas of the Company to increase by0%-5% in 2020. We expect total sales of piped gas of the Company tomaintain steady and moderate growth in 2020-2022. We expect theCompany to be less impacted by the COVID-19 pandemic due to its uniquecustomer mix.
We expect gas dollar margin of the Company to be stable in 2020. TheCompany was less impacted by higher gas procurement costs in 2019 due toits unique locations and customer mix. We expect natural gas supplysituation to be sufficient in 2020 and gas procurement cost of natural gas tobe stable.
We expect net profit contributed by water business to maintaindouble-digit growth, but beer business is expected to be severelyimpacted by the COVID-19 pandemic.
Revise down the TP to HK$37.60, but maintain "Buy".