[ET Net News Agency, 26 March 2020] BOCOM Research lowered its target price for Kunlun
Energy (00135) to HK$7 from HK$8.14 and maintained its "buy" rating.
The research house hosted post-results NDR for Kunlun to discuss results and outlook in
2020. The gas sales segment is now expected to be the major growth driver in 2020 with 15%
growth in segmental profit in 2020.
Kunlun will see one E&P project expire each year from 2021 to 2023, and will focus on
the natural gas downstream market. Meanwhile, the negotiation on the disposal of Shaanjing
Pipeline (SJP) has made little progress amid the outbreak of COVID-19.
BOCOM trimmed its 2020/21 EPS forecasts by 1%. (KL)