China Bank International released a research report saying that the first United Energy (0467.HK) buy rating and target price of HK $1.70.

According to the report, United Energy Group is a leading medium-sized independent upstream oil and gas company listed in Hong Kong, mainly engaged in oil and gas exploration, development, production and sales, headquartered in Hong Kong, mainly in emerging countries such as Pakistan, Iraq and Egypt. The proved and estimated reserves of equity reached approximately 1.07 billion barrels of oil equivalent at the end of 2020, with an average equity production of 91435 barrels of oil equivalent per day in the first half of 2021.

The company has acquired high-quality assets through strategic acquisitions over the past decade, of which Block B9 in Iraq will be a major source of profit growth in the coming years. According to the report, the company's profit performance in the past nine years has been good. Thanks to excellent cost control, effective resource development and prudent financial planning, we believe that these characteristics will contribute to the long-term development of the company. The profit in the first half of this year was HK $959 million, exceeding the level for the whole of 2020, and net profit in 2020-23 is expected to grow at an average annual compound rate of 44 per cent.