BOC International Lowers Kunlun Energy Target Price to HK$8.87, Maintains "Buy" Rating

Deep News
Mar 26

BOC International released a research report indicating that Kunlun Energy's (00135) core profit last year fell by 7% year-on-year to RMB 5.923 billion, which was in line with expectations. The decline in profit was primarily attributed to weak performance in its natural gas sales business. The institution forecasts that its core profit will remain stable through 2026. To reward investors, the company plans to increase its dividend payout ratio to 51% in 2025 and has committed to maintaining a payout ratio of no less than 50% from 2026 to 2028, with dividends per share not falling below the 2025 level. BOC International has lowered its profit forecasts for Kunlun Energy for 2026 and 2027 by 5% to 8%, reduced its target price from HK$9.6 to HK$8.87, and reaffirmed a "Buy" rating on the stock.

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