According to the report from CCB International, Kunlun Energy (00135) maintains its 'outperform' rating. Considering the downward adjustment of the profit margin forecast for retail gas sales and the reduced contribution from joint ventures, the bank has lowered its profit forecast for the group in 2024 to 2026 by 10%, 8%, and 8% respectively. The target price has been revised down from HK$9 to HK$8.5.

The report mentioned that the company's retail gas volume increased by 9% last year. Driven by industrial demand, the bank expects the group's gas sales profit to maintain healthy growth this year. The bank stated that after renting more gas stations, the group will shift more costs, and it is expected that the unit profit for this year will remain stable. The bank predicts that Kunlun's pre-tax profits from retail gas sales business will see a high-digit growth, similar to the 8.5% growth rate last year.