不断开拓新能源业务，主营业务稳中有进

Investment Rating - The report initiates coverage with an "Outperform" rating for Hong Kong and China Gas Company (3 HK) with a target price of HKD 6.39 [3][25]. Core Insights - Hong Kong and China Gas Company has been expanding its new energy business while maintaining steady progress in its core operations, which include gas sales and related services [2][5]. - The company has a market capitalization of HKD 110.65 billion (approximately USD 14.13 billion) and a three-month average daily trading volume of USD 12.68 million [3]. Company Overview - Established in 1862, Hong Kong and China Gas Company is the first public utility in Hong Kong, evolving from a simple gas provider to a leading player in the Chinese energy sector [8][22]. - The company's operations encompass smart energy, city gas pipeline, upstream and midstream projects, water supply and sewage treatment, urban waste resource utilization, and emerging environmental energy [8][22]. Financial Performance - The company reported total revenue of HKD 56.971 billion in 2023, reflecting a year-on-year decrease of 6.53% from HKD 60.953 billion in 2022 [4][24]. - The compound annual growth rate (CAGR) of total revenue from 2014 to 2023 was 7.83% [4][24]. - The net profit attributable to the owners of the company for 2023 was HKD 6.070 billion, an increase of 15.66% compared to HKD 5.248 billion in 2022 [4][14]. Revenue Breakdown - Gas sales and related businesses are the core operations, with gas sales amounting to HKD 42.518 billion in 2023, accounting for 74.63% of total revenue [5][23]. - The revenue from mainland China has been increasing, with sales in 2023 reaching HKD 44.982 billion, representing 78.95% of total revenue [5][23]. Profit Forecast and Valuation - The forecast for main operating revenue for FY24-26 is HKD 59.777 billion, HKD 62.446 billion, and HKD 64.947 billion, respectively, with corresponding net profits of HKD 6.298 billion, HKD 6.513 billion, and HKD 6.713 billion [6][25].