[ET Net News Agency, 5 October 2018] Credit Suisse lifted its target price for Kunlun
Energy (00135) to HK$11 from HK$9.5, and maintained its "outperform" rating.
The research house said the new Russia gas supply commencing in December 2019 will
induce gas demand in Northeast provinces beyond 2020 - particularly heating demand where
current penetration is low. Kunlun should benefit from the increased gas supply sources
into the region and ride on our estimated 19% CAGR gas demand over 2020-25.
Credit Suisse said its sensitivity analysis suggests 1.2/6.4bcm of incremental volumes
to Kunlun by 2020/2025 and brings in Rmb0.2bn/1.3bn of incremental net profit by
2020/2025. It lifted its 2019-20 EPS forecasts by 1-3% as we factor in higher volume from
the new Russia gas supply. (KL)