Trough valuation
• FY3/22 adjusted earnings declined 22%, below our and market expectations due to pressure on dollar margin
• Expect gas volume to grow by around 11% with dollar margin at Rmb0.48/cm in FY3/23
• Expect cash flow improvements to be a share price catalyst
• Trading at a low valuation of 8x FY3/23 PE, we maintain our BUY rating; TP cut to HK$14.20