[ET Net News Agency, 18 September 2018] Citi Research lifted its target price for
Kunlun Energy (00135) to HK$8.7 from HK$5.3, and upgraded its rating to "neutral" from
"sell" on higher gas margins and terminal utilization.
The research house said Kunlun's interim result was very strong given doubling in gas
sales operating profit margin, but Citi remains skeptical on the sustainability of gas
sales margin due to its heavier cost booking in 2H. LNG terminal is expected to stay
strong in 2H on seasonality.
While overall profitability has been improving, Citi sees the potential upcoming
Shaanjing pipeline spin-off as the key downside risk for the stock.
It raised its EPS forecasts by 20-31% in FY2018-20 to reflect higher gas sales operating
profit margin and terminal utilization. (KL)
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00135 KUNLUN ENERGY
Nominal 
7.300 +0.030 (+0.413%) Others
18/09/2018 14:57
[I-bank focus]Citi upgrades Kunlun Energy (00135) to HK$8.7
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