Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 92,922 million, up 6.72% from RMB 87,072 million in 2023[2] - Profit attributable to shareholders for the period was RMB 3,305 million, representing a 2.58% increase from RMB 3,222 million in 2023[3] - Basic earnings per share increased to RMB 38.17, up 2.58% from RMB 37.21 in the previous year[3] - Total revenue for the six months ended June 30, 2024, was RMB 95,342 million, compared to RMB 89,510 million for the same period in 2023, representing an increase of approximately 6.5%[12] - The company reported a total profit before tax of RMB 7,249 million for the six months ended June 30, 2024, compared to RMB 6,791 million for the same period in 2023, indicating a year-on-year growth of approximately 6.7%[11] - Total revenue reached RMB 92.922 billion, up RMB 5.850 billion or 6.72% year-on-year; net profit attributable to shareholders was RMB 3.305 billion, an increase of RMB 0.083 billion or 2.58% year-on-year[24] Sales and Volume - Total natural gas sales volume reached 26,438 million cubic meters, an increase of 10.55% compared to 2023[1] - The company achieved natural gas sales of 26.438 billion cubic meters in the first half of 2024, an increase of 2.522 billion cubic meters or 10.55% year-on-year[24] - Revenue from natural gas sales was RMB 76.660 billion, reflecting a year-on-year growth of 9.74%; the pre-tax profit was RMB 5.005 billion, up 2.41% year-on-year[28] - LPG sales volume reached 2.9258 million tons, maintaining stability compared to the same period last year; revenue was RMB 12.932 billion, a decrease of 6.66% year-on-year; profit before tax was RMB 561 million, an increase of 32.62%[29] - LNG processing and storage business achieved a revenue of RMB 5.662 billion, a year-on-year increase of 9.14%; profit before tax was RMB 1.648 billion, up 22.89%[30] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 143,519 million, compared to RMB 142,327 million at the end of 2023[5] - Total liabilities as of June 30, 2024, were RMB 55,630 million, compared to RMB 57,736 million at the end of 2023[5] - Total equity increased to RMB 86,697 million from RMB 84,372 million in December 2023[4] - The capital debt ratio as of June 30, 2024, was 22.24%, a decrease of 0.47 percentage points from 22.71% as of December 31, 2023[39] - Total borrowings amounted to RMB 24,111 million, with RMB 8,557 million due within one year as of June 30, 2024[40] Employee and Compensation - Employee compensation costs increased to RMB 3,169 million, up from RMB 2,628 million in 2023[2] - The company employed 24,371 employees globally as of June 30, 2024, a decrease from 28,139 employees in the same period last year[43] Dividends and Shareholder Returns - The company declared an interim dividend of RMB 16.41 per share, compared to no dividend in the previous year[1] - The company declared an interim dividend of RMB 0.1641 per share, totaling approximately RMB 1,421 million, based on 8,659 million shares issued[20] Operational Efficiency - The company’s operating cash flow reached RMB 5.352 billion, indicating strong operational efficiency[25] - The average load rate of two LNG receiving stations increased by 3.6 percentage points year-on-year, with a total gasification and loading volume of 7.770 billion cubic meters, up 5.92% year-on-year[30] Strategic Initiatives - The company is optimistic about achieving annual performance guidance and future development, focusing on four key areas: market expansion, strategic upgrades, operational management, and technological empowerment[33] - The company plans to accelerate the development of new energy projects, aiming for breakthroughs in six gas-electricity projects and advancing distributed natural gas projects in Chongqing[33] - The company has initiated 13 natural gas power generation projects with a total installed capacity of 8.81 million kilowatts[26] Governance and Compliance - The board of directors has confirmed compliance with the standard code of conduct for securities trading throughout the reporting period[51] - The company is in the process of selecting a suitable auditor as of May 29, 2024, and will make further announcements in accordance with listing rules[51] - The detailed interim performance report will be published by September 20, 2024, on the Hong Kong Stock Exchange and the company's website[52] Other Financial Metrics - Interest income rose to RMB 499 million, compared to RMB 394 million in 2023[2] - Interest expenses for the period were approximately RMB 411 million, a decrease of 5.73% from RMB 436 million in the same period last year[38] - Other net income for the period was approximately RMB 746 million, significantly up from RMB 239 million in the same period last year, mainly due to increased rental income from LNG refueling business integration[36] - The share of profits from associates was approximately RMB 335 million, an increase of 6.01% from RMB 316 million in the same period last year, primarily due to increased proven oil and gas reserves at CNPC-Aktobemunaigas Joint Stock Company[38]

Investment Rating - Maintained "Buy" rating with a target price of HKD 10.71 [1][13] Core Views - Retail gas volume growth is expected to outperform peers in 1H24, driven by industrial gas growth [13][14] - Retail gas price spread may face slight pressure in 1H24 due to structural factors and LNG competition [13][15] - LNG terminal utilization rate is expected to rise year-on-year in 1H24, with long-term growth potential in the southeastern coastal market [13][16] - Core profit for 2024-26 is forecasted at RMB 6.46/6.73/7.11 billion, with a dividend payout ratio expected to increase to 42% in 2024 [13] Financial Performance - Revenue for 2022-2026E is projected at RMB 171,944/177,354/180,491/185,325/194,539 million, with year-on-year growth rates of 24.11%/3.15%/1.77%/2.68%/4.97% [7][8] - Net profit attributable to the parent company for 2022-2026E is forecasted at RMB 5,228/5,682/6,457/6,726/7,105 million, with year-on-year growth rates of 1.69%/8.68%/13.65%/4.15%/5.65% [9] - EPS for 2022-2026E is projected at RMB 0.73/0.71/0.75/0.78/0.82 [10] - ROE for 2022-2026E is expected to be 9.00%/9.21%/9.87%/9.68%/9.67% [10] Valuation Metrics - PE ratio for 2022-2026E is estimated at 11.40x/11.66x/11.09x/10.65x/10.08x [11] - PB ratio for 2022-2026E is projected at 1.20x/1.13x/1.06x/1.00x/0.95x [11] - EV/EBITDA for 2022-2026E is forecasted at 6.30x/5.46x/4.93x/4.69x/4.40x [12] Market Position and Growth Drivers - Retail gas volume growth in 1H23/2023 was +9.5%/+9.2%, outperforming the national average of +5.6%/+7.6%, with industrial gas volume growing +11.1%/+15.5% [14] - LNG terminal utilization rate in 1H23/2023 was 81.8%/90.6%, with 1H24 expected to see a year-on-year increase [16] - The Fujian LNG terminal, which started construction in late 2023, is expected to enhance the company's market position in the southeastern coastal region [16]

Investment Rating - The report maintains a "Buy" rating for Kunlun Energy [1] Core Views - Kunlun Energy is positioned as a leading urban gas company, benefiting from its strategic transformation and strong backing from its major shareholder, China National Petroleum Corporation (CNPC) [9][21] - The company is expected to enhance its return on equity (ROE) by improving the efficiency of its liquid assets, potentially increasing ROE by 5.3 percentage points [10][14] - The natural gas sales business is experiencing rapid growth, particularly in the industrial sector, supported by favorable government policies promoting industrial transfer to the northwest and northeast regions of China [22][27] Summary by Sections Strategic Transformation - Kunlun Energy transitioned from oil and gas exploration to focusing on domestic natural gas terminal sales and comprehensive utilization since 2009, becoming a major player in the urban gas market [9][10] - The company has undergone continuous restructuring of its downstream business since 2012, enhancing its focus on urban gas, LNG processing, and LPG sales [9][10] Business Performance - The company reported total revenue of 177,726 million yuan in 2023, with a projected increase to 190,778 million yuan in 2024, reflecting a year-on-year growth of 7.34% [2] - The net profit attributable to shareholders is expected to grow from 5,682 million yuan in 2023 to 6,106 million yuan in 2024, representing an 8.68% increase [2] - The retail gas volume reached 303.12 billion cubic meters in 2023, with a compound annual growth rate (CAGR) of 16.0% from 2018 to 2023, significantly outpacing the national average of 7.1% [22][23] Financial Projections - The report forecasts net profits for 2024, 2025, and 2026 to be 61.06 billion yuan, 65.60 billion yuan, and 70.60 billion yuan, respectively, with corresponding price-to-earnings ratios of 10.5, 9.8, and 9.1 [42][41] - The company aims to achieve a dividend payout ratio of 45% by 2025, enhancing shareholder returns [18][19] Market Position - Kunlun Energy is the largest urban gas sales company in China, with a significant market presence across 31 provinces, benefiting from stable gas supply and pricing [9][10] - The company has a strong strategic alignment with CNPC, ensuring reliable gas sources and stable profit margins [21][27]

Investment Rating - The report initiates coverage on Kunlun Energy with a "Buy" rating [2] Core Views - Kunlun Energy is positioned as a leading city gas company, benefiting from its strategic transformation and strong backing from its parent company, China National Petroleum Corporation (CNPC) [2] - The company's gas sales are primarily focused on industrial transfer regions in Northeast and Northwest China, driving rapid growth in gas volume [2] - Kunlun Energy maintains stable price differentials due to its reliable gas supply from CNPC, ensuring steady profitability [2] - The company's LPG and LNG businesses are also experiencing high-quality development, with LNG processing and storage operations achieving profitability [2] Strategic Transformation and Business Development - Kunlun Energy transitioned from oil and gas exploration to focus on domestic natural gas terminal sales and comprehensive utilization in 2009 [7] - The company has undergone continuous restructuring of CNPC's downstream natural gas business since 2012, and in 2021, it sold some midstream assets to concentrate on downstream operations [7] - Kunlun Energy operates in 31 provinces, autonomous regions, and municipalities across China, making it one of the largest natural gas terminal utilization and LPG sales companies in the country [7] - The company's strategic shift has led to steady revenue growth, with a 10-year CAGR of 17.9% from 2013 to 2023 [8] Financial Performance and Valuation - Kunlun Energy's operating revenue for 2023 was RMB 177.726 billion, with a year-on-year growth of 3.16% [1] - Net profit attributable to the parent company in 2023 was RMB 5.682 billion, a year-on-year increase of 8.68% [1] - The company's EPS (fully diluted) for 2023 was RMB 0.66 per share, with a P/E ratio of 11.45 [1] - Kunlun Energy's market capitalization as of the valuation date (May 30, 2024) was HKD 71.5217 billion [1] Gas Sales Business - Kunlun Energy's gas sales are concentrated in industrial transfer regions, with industrial gas consumption driving overall growth [2] - From 2018 to 2023, the company's retail gas volume grew at a CAGR of 16.0%, significantly higher than the national average of 7.1% [2] - Industrial gas sales accounted for 69.4% of total gas sales in 2023, with commercial and residential gas sales making up 9.7% and 12.2%, respectively [2] - The company's gas price differential has remained stable at around RMB 0.5 per cubic meter from 2018 to 2023 [2] LPG and LNG Business - Kunlun Energy's LPG business is supported by stable gas supply from CNPC, with 90.1% of LPG resources sourced from CNPC in 2023 [2] - The company's LNG processing and storage operations have achieved high load rates, with the Tangshan and Jiangsu LNG receiving stations operating at around 90% capacity [2] - Kunlun Energy's LNG factories achieved a load rate of 45.4% in 2023, turning the business profitable for the first time [2] Profit Forecast and Investment Recommendation - The report forecasts Kunlun Energy's net profit attributable to the parent company to be RMB 6.106 billion, RMB 6.560 billion, and RMB 7.060 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 7.5%, 7.4%, and 7.6% [2] - The company's P/E ratios for 2024, 2025, and 2026 are projected to be 10.7x, 9.9x, and 9.2x, respectively [2] - Kunlun Energy's valuation is considered moderate compared to peers, with its stable gas supply from CNPC providing a competitive advantage [2]

研究报告Research Report 22 Apr 2024 昆仑能源 Kunlun Energy (135 HK) 工商业用户占比持续扩大，派息比例仍有上涨空间 Expansion of Industrial and Commercial User Proportion, Dividend Payout Ratio Still Has Upside Potential [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab维le_持Inf优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 评级 优于大市OUTPERFORM 2023年各业务板块全面盈利，期间费用率有所下降。公司2023年 现价 HK$7.00 实现营收 1,773.5 亿元，同比增长 3.2%；毛利率达 12.0%，同比下 目标价 HK$8.11 滑0.2pct；营业利润率达6.7%，同比增长0.2pct；净利率达5.2%， 同比增长 0.5pct；归母净利润 56.8 亿元，同比增长 8.7%。营收增 HTI ESG 4 ...

Natural Gas Sales and Volume - Natural gas sales business revenue reached RMB 140,600 million[3] - Total natural gas sales volume was 49,285 million cubic metres[3] - Sales volume of natural gas was 493 million cubic metres in 2023[7] - The total sales volume of natural gas reached 4.93 billion cubic meters in 2023, up from 4.50 billion cubic meters in 2022[13] - Natural gas sales volume was 49.285 billion cubic meters, a year-on-year increase of 9.6%, with retail gas sales volume at 30.312 billion cubic meters, up 9.2%[28] Revenue and Profit - Revenue for the year was RMB 177,354 million[5] - Profit attributable to shareholders was RMB 23,016 million[5] - Revenue for 2023 increased to RMB 177,354 million, up 3.15% from RMB 171,944 million in 2022[9] - Core profit before income tax expense for 2023 was RMB 13,101 million, compared to RMB 12,481 million in 2022[9] - The company achieved a revenue of RMB 177,354 million in 2023, a year-on-year increase of 3.1%[25] - Revenue for the year reached RMB 177.354 billion, a year-on-year increase of RMB 5.410 billion or 3.1%[26] - Revenue increased by 3.1% to RMB177,354 million compared to RMB171,944 million last year, driven by higher natural gas sales volume and prices[50] Earnings and Dividends - Basic earnings per share were RMB 265.80 cents[6] - Dividend per share was RMB 234.67 cents[6] - Earnings per share (Basic) rose to RMB 65.62 cents in 2023 from RMB 60.38 cents in 2022[11] - Dividend per share increased to RMB 28.38 cents in 2023 from RMB 25.39 cents in 2022[11] - Dividend payout ratio increased to 40.00% in 2023 from 35.00% in 2022[11] - The Group's 2023 final dividend is RMB28.38 cents per share, totaling approximately RMB2,457 million, with a payout ratio of 40%[184][187] - The company recommended a final dividend of RMB28.38 cents per share for 2023, totaling approximately RMB2,457 million, with a payout ratio of 40.00%[71] Profitability and Financial Ratios - Net profit margin improved to 5.22% in 2023 from 4.77% in 2022[11] - Return on total assets (ROA) increased to 6.55% in 2023 from 6.04% in 2022[11] - Liabilities-to-EBITDA ratio decreased to 3.17 in 2023 from 3.57 in 2022[11] - Profits before income tax increased by 10.5% to RMB 12,593 million in 2023[25] - Profit before income tax expense increased by 10.5% to RMB12,593 million compared to RMB11,392 million last year[49] - Profit attributable to shareholders increased by 8.7% to RMB5,682 million compared to RMB5,228 million last year[49] - Core profit attributable to shareholders decreased by 2.2% to RMB6,144 million compared to RMB6,281 million last year[49] LNG and Crude Oil Sales - LNG gasification, entrucking & processing volume was 191 million cubic metres in 2023[8] - Equity sales volume of crude oil was 1,354 10,000 barrels[8] - LNG gasification volume increased to 1.56 billion cubic meters in 2023, compared to 1.52 billion cubic meters in 2022[15] - The company's LNG processing volume remained stable at 28 million cubic meters in 2023[15] - Equity sales volume of crude oil decreased to 921,000 barrels in 2023 from 1,105,000 barrels in 2022[15] - LNG gasification and entrucking volume at Tangshan and Jiangsu LNG terminals totaled 16.326 billion cubic meters, a year-on-year increase of 3.1%[32] - Equity sales volume of crude oil was 9.21 million barrels, a year-on-year decrease of 1.84 million barrels or 16.7%, with sales revenue dropping 60.2% to RMB 911 million[33] User and Market Growth - Cumulative users reached 15,604,000 with 890,000 new users added[3] - The number of city gas projects in operation reached 280 across various provinces in 2023[17] - Cumulative number of users reached 15.604 million, a year-on-year increase of 6.1%[28] - The company added 12 new city gas projects and 15 new projects including Changzhou Kunlun were put into production and consolidated[34] - 48% of project companies achieved residential gas sales using the price linkage mechanism[34] - The annual apparent consumption of natural gas in China increased by 7.6% to 3,945.3 billion cubic meters in 2023[22] Environmental and Social Responsibility - Methane emission intensity decreased by 32% compared to 2020, and carbon dioxide emission intensity decreased by 6%[40] - The company achieved energy savings of 24 million tons of standard coal in 2023[40] - The company invested over RMB 16 million in social welfare, consumption assistance, and rural revitalization[41] - The Group emphasizes environmental protection and promotes energy conservation and emission reduction as part of its long-term strategy[182][185] Corporate Governance and Board Activities - The Board has a strong element of independence and effectively exercises independent judgement[84] - The Board consists of at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise[84] - Independent non-executive directors represent at least one-third of the Board[84] - The Board has adopted a Board Diversity Policy and a Nomination Policy to align with diversity requirements[86][90] - The Nomination Committee reviews the Board's structure, size, composition, and diversity at least once a year[91] - Board appointments are based on meritocracy, contributions to the Board, and objective criteria including skills, knowledge, experience, gender, age, ethnicity, and educational background[92] - As of 31 December 2023, the Board's age diversity includes 14% aged 50-59, 29% aged 60-69, and 57% aged above 70[94] - The Board currently has all male Directors and aims to appoint at least one female board member by 31 December 2024[97][98] - As of 31 December 2023, the Group had 27,138 employees, with male and female employees accounting for 68% and 32% respectively[99] - The Board held four meetings, three Audit Committee meetings, one Remuneration Committee meeting, two Nomination Committee meetings, and one Sustainability Committee meeting during the year[106] - All Executive Directors attended all four Board meetings, with Mr. Fu Bin and Mr. Gao Xiangzhong also attending Nomination Committee and Sustainability Committee meetings respectively[108] - Independent Non-executive Directors attended all Board meetings and relevant committee meetings, with Dr. Liu Xiao Feng and Mr. Tsang Yok Sing Jasper attending all committee meetings[108] - Notices for regular Board meetings are served at least 14 days in advance, with agenda and Board papers sent at least 3 days before each meeting[109] - The Chairman, CEO, CFO, and Company Secretary attend Board and committee meetings to advise on business developments, financial matters, and corporate governance[110] - The Audit Committee reviewed the company's annual results and found no material uncertainties affecting its ability to continue as a going concern[122] - The Audit Committee conducted three meetings during the year to deliberate on financial results, internal controls, and the re-appointment of the independent auditor[119][121] - The Remuneration Committee reviewed management's remuneration proposals and made recommendations based on corporate goals, individual performance, and market conditions[123] - The company's Board has four committees: Audit, Remuneration, Nomination, and Sustainability, each with defined written terms of reference[115] - The Chairman and Chief Executive Officer roles are held by separate individuals, with Mr. Fu Bin as Chairman and Mr. Qian Zhijia as CEO[113][116] - The Audit Committee comprises three Independent Non-executive Directors, including one with professional accounting or financial management expertise[118] - The company ensures Directors receive adequate, complete, and reliable information in a timely manner for decision-making[114] - The Remuneration Committee is chaired by Dr. Liu Xiao Feng and focuses on transparent procedures for determining remuneration[123] - The company supports the division of responsibilities between the Chairman and CEO to ensure a balance of power and authority[113][116] - The Audit Committee reviewed the company's financial reporting system, internal control system, and risk management system for adequacy and effectiveness[119] - The majority of the company's management received remuneration totaling around RMB 8 million in 2023[127] - The Remuneration Committee held one meeting during the year to review the company's remuneration policy and structure[126] - The Nomination Committee held two meetings during the year to review board composition and director re-election proposals[128] - The Board reviewed the effectiveness of the company's internal controls and risk management systems during the year[130] - The audit fees charged by PricewaterhouseCoopers for the Company and its subsidiaries amounted to approximately RMB14 million, a decrease from RMB15 million in 2022[133] - The fees charged by other auditors of the Group for audit services and non-audit services during the Year amounted to approximately RMB17 million and RMB2 million respectively, compared to RMB8 million and RMB2 million in 2022[133] - Two general meetings were held on 31 May 2023 and 16 November 2023, which were the 2023 annual general meeting and special general meeting[136] - The attendance records of the Directors to the 2023 annual general meeting and special general meeting show full attendance for most directors, except for Mr. Zhou Yuanhong who missed the special general meeting[137] - A special general meeting can be convened by shareholders holding at least one-tenth of the paid-up capital of the Company with voting rights[138] - The Company has adopted a new arrangement for the dissemination of corporate communication, allowing shareholders to request printed copies in addition to electronic distribution[139] - The company adopted new bye-laws on 31 May 2023 to comply with the Core Shareholder Protection Standards and incorporate housekeeping amendments[143] - The company maintains a website (http://www.kunlun.com.hk) for extensive business updates, financial information, and corporate governance practices[143] - The company’s internal control system includes a well-established organizational structure, comprehensive policies, and an internal audit department[144] - The Board annually assesses the effectiveness of the Group’s internal control system, covering financial, operational, compliance controls, and risk management[145] - The company identified and monitored eight major risks in 2023, focusing on dynamic monitoring and alert systems[148] - The company ensured winter natural gas supply by coordinating incremental resources to balance market demand and supply[150] - The company strengthened terminal purchase and marketing price differential management, incorporating it into annual performance contracts[150] - The company implemented a weekly dynamic analysis mechanism to stay updated on market changes and optimize marketing strategies[150] - The company achieved a 100% pipeline digitization rate through the production management system, realizing comprehensive factor coverage and online management mode[153] - The company strengthened cooperation with key chemical users, promoting regional resource recycling and repurchase of by-product resources through raw material supply[151] - The company expanded import resource procurement channels, opening a Russian gas import route in the Hunchun direction and organizing sales of Kazakhstan gas beyond Xinjiang to the Ningxia region[151] - The company formulated the "Four Principles" for third-party management, including detailed data, complete markers, and graded control for pipeline management[153] - The company implemented the "Five-step Method" for third-party pipeline construction management, achieving closed-loop management of third parties[153] - The company strengthened risk prevention and control, clarifying conditions and strategies for project termination or withdrawal based on market risks[152] - The company improved the efficiency of pre-planning work, simplifying feasibility study procedures and implementing project classification and authorization management[152] - The company promoted the use of vibration warning, smart AI video surveillance, and drones for pipeline inspection, constructing an all-round three-dimensional protection network[153] - The company standardized safety inspection procedures, enhancing the capability of safety inspectors and improving the quality of safety inspections[154] - The company implemented IoT-powered gas meters, stainless steel corrugated hoses, self-closing valves, and combustible gas alarms to reduce safety incidents caused by improper customer-end operation[154] - Strengthened policy research and response by collecting and studying national and local policies, enhancing analysis and response strategies at bi-weekly and monthly meetings[156] - Promoted two contango exercises for heating and non-heating periods, ensuring a stable year-on-year increase in the purchase and marketing price differential[156] - Integrated gas station business by leasing stations to refined oil sales enterprises to eliminate uncertainty and expand gas supply scale[156] - Increased end-user development to diversify user structure and offset lower gas consumption in a single industry due to policy reasons[156] - Revised the "Management Measures for the Selection of Cooperative Shareholders" to improve standards and implement risk prevention and compliance management[157] - Strengthened communication with cooperative shareholders and monitored their operating conditions to adopt early risk mitigation measures[157] - Conducted annual special inspections of guarantee and credit business, identifying no new irregularities in guarantee matters[160] - Strengthened project supervision and inspection, implementing closed-loop management of identified problems[162] - Regularly convened special coordination meetings and provided onsite guidance to strengthen project process control and management[162] - Enhanced accountability management by holding responsible units and persons accountable for serious and typical problems found during inspections[162] Future Development and Strategy - The company aims to achieve "multi-energy integration" and "new energy" installed capacity of one million kilowatts by 2025[46] - The company is focusing on the integration of gas and new energy to broaden the road of green and low-carbon transformation[171] - The company is accelerating the building of smart gas enterprises by strengthening data intelligence and establishing a full-process data management chain[174] - The company is promoting the local price linkage mechanism to improve the upstream and downstream cost transmission mechanism[171] - The company is actively exploring emerging businesses such as carbon sink, carbon trading, and methane escape detection[171] - The company is striving to create a safe gas enterprise that allows the government to rest assured and the people to rest assured[174] - The company is enhancing modern governance by focusing on ESG management efficiency[174] - The company is expanding the new mode of service system based on customer needs to achieve sustainable development[170] - The company is promoting the integration of "One City, One Gas Supplier" projects to maintain a market size with steady growth[171] - The company is actively carrying out the exploration of photovoltaic, wind energy, geothermal, and biomass fields[171] - National natural gas consumption is expected to grow by approximately 6% in 2024, with power generation gas leading the growth[42][44] - The company is confident in its performance guidance and future development under the national "carbon peak and carbon neutrality" goals[43][45] Financial and Operational Costs - Purchases, services, and others increased by 3.4% to RMB151,091 million compared to RMB146,077 million last year, in line with natural gas sales growth[50] - Employee compensation costs increased by 3.8% to RMB5,970 million compared to RMB5,749 million last year, remaining stable at 3.37% of operating revenue[51] - Depreciation, depletion, and amortization increased by 2.1% to RMB4,992 million compared to RMB4,887 million last year[52] - Other selling, general, and administrative expenses decreased by 3.0% to RMB3,656 million compared to RMB3,770 million last year due to strict cost control[53] - Interest expenses for the year increased by 6.8% to RMB960 million compared to RMB899 million last year[54] - Total interest expenses for the year increased by 2.8% to RMB995 million compared to RMB968 million last year[54] - Capitalized interest expenses under construction-in-progress decreased by 49.3% to RMB35 million compared to RMB69 million last year[54] - Share of profits less losses of associates decreased by 11.2% to RMB466 million compared to RMB525 million last year[55] - Employee compensation costs increased by 3.8% to RMB5,970 million compared to RMB5,749 million last year[56] - Depreciation, depletion, and amortization increased by 2.1% to RMB4,992 million compared to RMB4,887 million last year[57] - Other selling, general, and administrative expenses decreased by 3.0% to RMB3,656 million compared to RMB3,770 million last year[57] - Share of profits less losses of joint ventures increased by 24.0% to RMB579 million compared to RMB467 million last year[60] - Total assets of the Group increased by 3.3% to RMB143,519 million compared to RMB138,892 million last year[61] - The gearing ratio of the Group decreased by 1.55% to 22.71% compared to 24.26% last year[63] - The company has formulated a three-year dividend distribution plan aiming to achieve an annual dividend payout ratio of 45% of the Group's annual profit attributable to shareholders by the financial year ending 31 December 2025[71] - The company plans to declare interim and final dividends twice a year for the financial years ending 31 December 2024 and 2025[71] - The company's distributable reserves as of 31 December 2023 were RMB 10,284 million, including RMB 109 million in contributed surplus and RMB 10,175 million in retained earnings[197] - The company's distributable reserves as of 31 December 2022 were RMB 10,949 million, including RMB 109 million in contributed surplus and RMB 10,840 million in retained earnings[197] Customer and Market Satisfaction - Customer survey satisfaction rate increased to 99.5%[39][40] - The company secured new energy installation indicators totaling 4.302 million kilowatts in regions such as Xinjiang, Hebei, and Shandong[39] - Value-added business revenue increased by 21% year-on-year[39] - The company operated

业绩点评 业绩点评 24 年零售气量持续增长，派息率将稳步提升 昆仑能源（0135.HK） 2024-03-27 星期三 主要财务指标 关键指标 2020A 2021A 2022A 2023A 营业总收入(人民币 109,251 138,547 171,944 177,354 百万元) 增长率(%) 7.33 26.82 24.11 3.15 归母净利润(人民币 6,063 23,016 5,228 5,682 百万元) 增长率(%) 9.22 279.61 -77.29 8.68 EPS(稀释)（元） 0.70 2.66 0.60 0.66 ROE(摊薄)(%) 11.31 40.90 8.73 8.96 ROA(%) 5.60 7.53 8.42 8.98 相关报告 数据来源：Wind、公司公告、国元证券经纪（香港）整理 业绩点评： ➢ 23年核心利润低于预期： 2023 年公司实现收入为人民币 1,773.54 亿元，同比增加 3.15%；公司股 东应占溢利 56.82 亿元，同比增加8.68%；每股基本盈利 65.62 分，拟派 发股息每股 28.38 分。股东应占核心溢利为人民币 61.4 亿元，同 ...

Investment Rating - The report maintains an "Overweight" rating for Kunlun Energy with a target price of HKD 8.45 [2] Core Views - Kunlun Energy's 2023 performance met expectations with stable retail price spreads and a focus on shareholder returns through a three-year dividend plan [2] - The company aims for growth in 2024 with rapid expansion in value-added services [2] - Kunlun Energy's retail gas price spread met expectations at RMB 0.501 per cubic meter, with LNG terminal utilization rate significantly improving to 90.6% in 2023 [2] - The company announced a three-year dividend plan, aiming to increase the payout ratio from 40% to 45% by 2025 [2] - Kunlun Energy's 2024 operational targets include a 10% YoY increase in natural gas retail volume and a 7% YoY increase in LNG plant processing volume [2] - Value-added services showed strong growth, with e-commerce platform sales reaching RMB 74.65 million, a 366% YoY increase, and gas appliance sales reaching 45,900 units, a 58.8% YoY increase [2] Financial Summary - Kunlun Energy's 2023 revenue was RMB 177.35 billion, a 3.1% YoY increase, with net profit attributable to shareholders of RMB 5.682 billion, an 8.7% YoY increase [3] - Natural gas sales revenue reached RMB 140.6 billion, a 6.6% YoY increase, with pre-tax profit of RMB 8.32 billion, a 6.3% YoY increase [3] - LNG business revenue was RMB 9.04 billion, a 5.9% YoY increase, with pre-tax profit of RMB 3.65 billion, a 15.6% YoY increase [3] - The company's 2024-2026 EPS forecasts were adjusted to RMB 0.74, RMB 0.78, and RMB 0.85, respectively [3] Comparable Company Valuation - Kunlun Energy's 2024E PE ratio is 8.46x, lower than the industry average of 9.25x [4] - The company's 2024E EPS is forecasted at RMB 0.74, with a target price of HKD 8.45 based on a 10.5x PE ratio [4]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified, maintaining the rating for the next six months [1][6]. Core Viewpoints - The company has shown a steady increase in revenue and profit, with a 3.1% year-on-year increase in revenue to RMB 177.35 billion and an 8.7% increase in net profit to RMB 5.68 billion in 2023 [2]. - The company has implemented a three-year dividend distribution plan, increasing the payout ratio from 35% to 40% in 2023, with a target to reach 45% by the end of 2025 [5]. - Natural gas sales have seen significant growth, with a total sales volume of 49.285 billion cubic meters, a 9.6% increase year-on-year, outperforming the industry average [3]. Summary by Sections Basic Data - Total shares outstanding: 8,658.80 million shares - Total market capitalization: 58,793.26 million HKD - Net asset value per share: 8.09 HKD - Debt-to-asset ratio: 40.23% - Price range over the past year: 7.75 HKD (high) / 5.45 HKD (low) [1]. Financial Performance - The company achieved a net profit margin of 5.22% in 2023, up from 4.77% in 2022, and a return on equity of 11.12%, compared to 10.48% in the previous year [2]. - The company’s earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.75, 0.81, and 0.88 RMB respectively, with corresponding price-to-earnings (PE) ratios of 8.2, 7.6, and 7 times [6]. Natural Gas Sales - The company added 12 new city gas projects, bringing the total to 280 projects, with retail gas sales reaching 30.312 billion cubic meters, a 9.2% increase year-on-year [3]. - The industrial and commercial gas sales volumes were 21.045 billion cubic meters and 2.945 billion cubic meters, reflecting year-on-year growth of 15.5% and 11.1% respectively [3]. LNG Processing and Storage - The LNG processing and storage segment generated revenue of RMB 9.042 billion, a 5.9% increase year-on-year, with an average load factor of 90.6% for the LNG receiving stations [4]. - The LNG plants turned a profit with a pre-tax profit of RMB 0.02 billion, achieving a processing volume of 2.827 billion cubic meters [4]. Dividend Policy - The company has announced a three-year dividend distribution plan, aiming to increase the payout ratio progressively, with a capital expenditure of RMB 5.348 billion in 2023, a decrease of 16.66% year-on-year [5].

申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 公共事业 | 公司研究 工业气量保持高增，毛差仍具修复空间 2024年3月26日 昆仑能源 (00135:HK) 买入 昆仑能源发布2023年业绩报告，2023年公司实现营业收入1773.54亿元，同比增长3.1%； 归属于上市公司股东的净利润为 56.82 亿元，同比增加8.68%；归母核心利润61.44亿元， 维持评级 同比下跌 2.18%。公司2023 年分红率为 40%，每股派息0.2838元/股，根据3 月26 日收 盘价计算股息率为4.55%。公司业绩表现略低于我们的预期，主要受下半年公司受员工激励、 资产减值、原油销售价格下降及零售气顺价进度慢于预期等因素叠加所致。 市场数据：2024年3月26日 工业气表现强劲引领天然气销量稳健增长，顺价进度较缓拖累下半年业绩。2023全年公司天 收盘价（港币） 6.79 然气总销售量492.85亿m³，同比增加9.6%，零售气量303.11亿m³，同比增加9.2%。其 恒生中国企业指数 5825.42 中占零售气量比重达69% ...