Citigroup: KUNLUN ENERGY (00135) rated as "buy", target price lowered to HK$8.8

10:53 10/01/2025

Citigroup has lowered its net profit forecast for Kunlun Energy for 2024, 2025, and 2026 by 2%, 4.6%, and 4.9% respectively.

Citi released a research report stating that KUNLUN ENERGY (00135) has a "buy" rating, with net profit forecasts for the Group for 2024 to 2026 being reduced by 2%, 4.6%, and 4.9% respectively. The target price is lowered from HK$9 to HK$8.8. The report states that KUNLUN ENERGY's lower growth in retail gas sales volume and decreased utilization rate of liquefied natural gas (LNG) receiving stations, coupled with the increase in USD profit margins due to the decrease in unit retail gas sales costs, cannot offset the negative impact. In addition, Citi believes that gas distributors in China will provide more conservative guidance on the growth of retail gas sales volume for this year during the March earnings season.

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Industry Cold Winter! Weak demand dragged down the October shipments of HVAC equipment in the United States by nearly half. UBS warns that recovery will have to wait until the second half of 2026.

JP Morgan: Demand for passenger cars in mainland China continues to be weak in December. Subsidies may continue next year, but with new requirements.

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