UBS released a research report noting that Kunlun Energy's (00135) core profit last year fell 7% year-on-year to RMB 5.92 billion. However, the dividend payout ratio increased by 8 percentage points to 51%. The company has guided that the dividend payout ratio will not be lower than 50% from 2026 to 2028, with total annual dividends not falling below the 2025 level. Based on last year's performance, the bank lowered its earnings per share forecast for the company from 2024 to 2028 by 3% to 5%. The target price was raised from HK$9.70 to HK$10.70, maintaining a "Buy" rating, which corresponds to a forecasted price-to-earnings ratio of 13 times. The report indicated that the company's retail natural gas sales volume grew 2.3% last year, with sales to industrial users still recording 6.2% growth, while sales to residential users fell 4.4%. Utilization of LNG processing plants increased to 67.2%, with pre-tax profit doubling. Utilization of LNG receiving terminals also rose to 90.8%. The company expects retail natural gas sales to grow by approximately 3% this year, LPG sales volume to reach 5.8 million tons, and utilization of LNG receiving terminals to be guided between 85% and 90%.