According to the research report released by Bocom Intl, the target price of Kunlun Energy (00135) has been raised by 9.74%, from HK$8.52 to HK$9.35. It also raised the earnings per share for 2024/25 by 1% and 0.2% respectively. It is expected that the compound annual growth rate for the company from 2023 to 2026 will be 10%, and the rating remains 'buy'.

The report states that the company's first-half profit increased by 2.6% to RMB 3.3 billion, in line with the bank's expectations. The company has also announced a mid-term dividend of RMB 0.164 per share, with a dividend payout ratio of 43%. The bank estimates that the company's retail gas volume will increase by 8% in 2024, and the gross margin per ton of LNG processing and LPG will increase year-on-year in 2024. Overall, the bank estimates that the upstream business of the company will account for only 2.4% of the pre-tax profit in 2024, and the LNG/LPG division will continue to maintain a clear growth trend with improved operational efficiency.