[ET Net News Agency, 10 March 2020] Daiwa Research lowered its target price for Kunlun
Energy (00135) to HK$5.35 from HK$9 and downgraded its rating to "outperform" from "buy".
The research house said Kunlun's share price is down 33% year-to-date, likely due to
weak LNG (liquefied natural gas) demand in China after the COVID-19 outbreak. Daiwa
believes the collapse of oil prices following the Russia-Saudi Arabia split and Saudi
retaliation will further drag profitability of Kunlun's LNG segments.
However, Daiwa sees Kunlun's pipeline spinoff story under the setup of the National Oil
and Gas Pipeline Company (NPC) as intact, which could serve as a catalyst for its
share-price recovery by end-2020. (KL)