Bank of America Securities: Kunlun Energy's Annual Results Miss Expectations, "Neutral" Rating Maintained

Stock News
Mar 25

Bank of America Securities issued a research report stating that Kunlun Energy's post-tax profit for 2025 fell by 10% year-on-year to 5.346 billion yuan, while its core post-tax profit declined by 7% to 5.923 billion yuan, slightly below the bank's expectations. The report noted that the company may face challenges in increasing gas sales volume in the short term, as China's natural gas demand growth has slowed due to a shift from gas to coal, driven by tight seaborne supply and high prices. However, supported by the company's strong net cash position, management remains committed to rewarding shareholders, pledging a minimum dividend payout ratio of 50% for the period from 2026 to 2028. The bank maintained a "Neutral" rating with a target price of HK$8.5.

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