Investment Rating - The report maintains a "Buy" rating for Kunlun Energy (00135.HK) [1] Core Views - The company reported a revenue of 187.046 billion yuan for 2024, representing a year-on-year growth of 5.24%. The net profit attributable to shareholders was 5.96 billion yuan, up 4.89% year-on-year. The company declared a dividend of 0.3158 yuan per share, with a core profit payout ratio of 43% [7] - Retail gas volume continues to grow significantly, with a year-on-year increase of 8.1% in retail gas sales volume. The company is expanding its business layout into the central and western provinces of China [7] - The company expects a retail gas volume growth of 8% in 2025, with an anticipated addition of 600,000 to 700,000 new users [7] Financial Summary - Total revenue and net profit forecasts for 2025-2027 are adjusted to 61.47 billion yuan, 64.69 billion yuan, and 67.96 billion yuan respectively, with year-on-year growth rates of 3.14%, 5.24%, and 5.05% [7] - The company’s operating cash flow for 2024 was 12.585 billion yuan, with a free cash flow of 7.044 billion yuan, reflecting a decrease of 19.73 billion yuan year-on-year due to increased capital expenditures [7][8] - The company’s capital expenditures for 2024 increased by 12.54 billion yuan to 6.602 billion yuan, primarily for natural gas sales and LNG receiving stations [7]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a total revenue of 187.046 billion yuan for 2024, representing a year-on-year growth of 5.24%. The net profit attributable to shareholders was 5.96 billion yuan, an increase of 4.89% year-on-year. The company declared a dividend of 0.3158 yuan per share, with a core profit payout ratio of 43% [7] - Retail gas volume continues to grow significantly, with retail gas volume increasing by 8.1% year-on-year to 32.8 billion cubic meters. The company expects an 8% growth in retail gas volume for 2025, with an addition of 600,000 to 700,000 new users [7] - The company has a solid cash flow position, with operating cash flow of 12.585 billion yuan and free cash flow of 7.044 billion yuan in 2024. The dividend payout ratio is expected to increase to 45% in 2025, corresponding to a dividend yield of 4.2% [7] Financial Summary - Total revenue forecast for 2024 is 187.046 billion yuan, with a projected growth rate of 5.24% for the following years [8] - The net profit attributable to shareholders is expected to reach 6.147 billion yuan in 2025, with a year-on-year growth of 3.14% [8] - The company’s earnings per share (EPS) is projected to be 0.71 yuan in 2025, with a price-to-earnings (P/E) ratio of 10.16 [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company is expected to achieve a natural gas sales volume of 54.17 billion cubic meters in 2024, representing a year-on-year growth of 9.9%, with retail gas volume increasing by 8.1% [2][6]. - The company’s revenue for 2024 is projected to be 187.046 billion yuan, a year-on-year increase of 5.46%, with net profit attributable to shareholders reaching 5.960 billion yuan, up 4.89% [6]. - The company emphasizes shareholder returns, with a planned annual dividend of 0.3158 yuan per share, resulting in a payout ratio of 43% and a dividend yield of 4.18% based on the closing price on the report date [2][6]. Summary by Sections Sales Performance - The company’s industrial gas volume is expected to account for 74.9% of total sales in 2024, an increase of 5.5 percentage points year-on-year, with industrial gas volume rising by 16.5% [2][6]. - Retail gas volume in the northwest and southwest regions is projected to grow by 12% and 19.2% respectively, significantly outpacing the national average growth rate of 8% [6]. Financial Performance - The company’s LNG processing and storage business revenue is expected to grow by 1.6%, while the tax profit remains stable with a slight increase of 0.2% [6]. - The average load rate of LNG receiving stations is projected to be 87.6%, a decrease of 3 percentage points year-on-year, while LNG processing volume is expected to increase by 25.6% [6]. Dividend Policy - The company has announced a three-year dividend plan aiming for a payout ratio of 45% of net profit by the end of the fiscal year 2025 [6]. - The company has initiated interim dividends for the first time, with a payout of 0.1641 yuan per share for the interim and 0.1517 yuan per share for the final dividend [6].

Group 1: Agriculture and Livestock Industry - The probability of capacity reduction in the pig farming industry is high, with recovery difficulties greater than in previous cycles, indicating that the pig cycle is likely to return to normal gradually [2] - The overall output of large-scale pig enterprises is expected to increase year-on-year in 2025, while the industry may re-enter a loss state due to strong supply and weak demand for pig prices [2] - The pig farming sector is currently undervalued, with significant upside potential in stock valuations as many stocks are at historical low valuation ranges [2] Group 2: Light Textile Industry - The company, Shifeng Culture, is expected to turn a profit in 2024, with its toy business accounting for over 90% of revenue from 2018 to 2023 [3] - The integration of AI and IP in product development is leading the industry trend, with successful launches of AI toys that meet various functional needs [3] - The company plans to expand its market presence through diversified strategies and aims to enter overseas markets, projecting significant growth in net profit from 0.1 billion to 1.0 billion from 2024 to 2026 [3] Group 3: Healthcare Industry - The company, Weijian Medical, is actively responding to a crisis by enhancing its internal controls and implementing a traceability project for its sanitary products [5] - The brand, Nais Princess, has gained market recognition and improved rankings on e-commerce platforms due to its product quality and clean production environment [5] - The company aims to enhance product quality and innovation in its core product lines, focusing on consumer trust and product storytelling [5][27] Group 4: Human Resources Industry - Beijing Renli is embracing AI technology to drive digital transformation in the human resources sector, establishing a joint venture to focus on AI applications [9][30] - The company is developing a dual technology path to enhance operational efficiency and risk management through AI integration [30] - Profit forecasts for 2024-2026 have been adjusted downward, with expected net profits of 8.3 billion, 9.5 billion, and 10.4 billion respectively [9][32] Group 5: Energy Industry - Kunlun Energy reported a revenue of 1870.46 billion RMB in 2024, reflecting a year-on-year increase of 5.5% [33] - The company achieved a natural gas sales volume of 541.70 billion cubic meters, up 9.9% year-on-year, outperforming industry growth [33] - The LNG plant's operational efficiency has improved, with 13 plants achieving profitability, indicating a positive trend in the energy sector [35]

Investment Rating - The report maintains a "Buy" rating for Kunlun Energy [2][7][17] Core Views - The company achieved a revenue of 187.046 billion RMB in 2024, representing a year-on-year growth of 5.46%, and a net profit attributable to shareholders of 5.960 billion RMB, up 4.89% year-on-year, which is in line with expectations [7] - The company plans to distribute a final dividend of 0.1517 RMB per share, leading to an annual dividend of 0.3158 RMB per share, resulting in a dividend yield of 4.12% based on the closing price on March 25 [7] - The sales volume of natural gas for 2024 reached 54.170 billion m³, a year-on-year increase of 9.91%, with retail gas volume growing by 8.07% [7] - The company has added 8 new city gas projects and 849,900 new users, bringing the total user base to 16.4538 million by the end of 2024 [7] - The report highlights that the company is expected to maintain a high dividend payout ratio of 45%, enhancing its investment value [7] Financial Data and Profit Forecast - Revenue projections for the company are as follows: 2023: 177.354 billion RMB, 2024: 187.046 billion RMB, 2025E: 196.263 billion RMB, 2026E: 207.091 billion RMB, 2027E: 216.586 billion RMB [3][8] - Net profit attributable to shareholders is forecasted to be: 2023: 5.682 billion RMB, 2024: 5.960 billion RMB, 2025E: 6.390 billion RMB, 2026E: 6.909 billion RMB, 2027E: 7.478 billion RMB [3][8] - Earnings per share (EPS) are projected to be: 2023: 0.66 RMB, 2024: 0.69 RMB, 2025E: 0.74 RMB, 2026E: 0.80 RMB, 2027E: 0.86 RMB [3][8] - The price-to-earnings (PE) ratios for 2025-2027 are estimated at 10.4, 9.6, and 8.9 respectively [7]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Viewpoints - The company achieved a revenue of RMB 187.046 billion, an increase of RMB 9.692 billion or 5.5% year-on-year. The net profit attributable to shareholders was RMB 5.960 billion, up RMB 0.278 billion or 4.9% year-on-year. The core profit attributable to shareholders was RMB 6.359 billion, an increase of RMB 0.215 billion or 3.5% year-on-year. The annual dividend was RMB 0.3158 per share, with a payout ratio of approximately 43% [1]. - The company's gas sales volume outperformed the industry, with a slight increase in gross margin compared to the first half of the year. The total natural gas sales volume reached 54.170 billion cubic meters, a year-on-year increase of 9.9%. Retail gas volume was 32.757 billion cubic meters, up 8.1% year-on-year, while distribution and trading accounted for approximately 21.4 billion cubic meters, a rise of 12.9% year-on-year [1][2]. - The company is expanding its business layout into the central and western provinces, which have high growth potential and significant profit contributions. Retail gas volumes in the northwest and southwest regions grew by 12% and 19.2%, respectively [1]. Summary by Sections Financial Performance - The company reported a total revenue of RMB 187.046 billion, with a net profit of RMB 5.960 billion and a core profit of RMB 6.359 billion for the year [1]. - The average procurement price for gas was RMB 2.37 per cubic meter, while the sales price was RMB 2.84 per cubic meter, resulting in a weighted average price difference of RMB 0.47 per cubic meter [2]. LNG Operations - The LNG receiving stations in Tangshan and Jiangsu had a gasification loading volume of 15.940 billion cubic meters, a decrease of 2.4% year-on-year. The average load factor for the two stations was 87.6%, down 3 percentage points year-on-year. The operational efficiency of LNG plants improved, with 13 plants achieving profitability [2]. Exploration and Production - The exploration and production business faced significant impacts due to the expiration of oil field contracts. The company achieved an oil sales volume of 8.29 million barrels, a decrease of 0.92 million barrels or 10% year-on-year, with an average realized price of USD 66.7 per barrel [3]. Profit Forecast - The profit forecasts for 2025 and 2026 have been revised down to RMB 6.414 billion and RMB 7.011 billion, respectively, with a new forecast for 2027 set at RMB 7.656 billion. The EPS for 2025, 2026, and 2027 is projected to be RMB 0.74, RMB 0.81, and RMB 0.88, respectively [4].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [4]. Core Views - The company reported a revenue of RMB 187.046 billion for 2024, an increase of RMB 9.692 billion or 5.5% year-on-year. The net profit attributable to shareholders was RMB 5.960 billion, up RMB 0.278 billion or 4.9% year-on-year, while the core profit attributable to shareholders was RMB 6.359 billion, an increase of RMB 0.215 billion or 3.5% year-on-year. The annual dividend was set at RMB 0.3158 per share, with a payout ratio of approximately 43% [1]. - The company's gas sales volume outperformed the industry, with a total of 54.170 billion cubic meters sold in 2024, representing a year-on-year increase of 9.9%. Retail gas sales accounted for 32.757 billion cubic meters, up 8.1% year-on-year, while distribution and trading reached approximately 21.4 billion cubic meters, a 12.9% increase year-on-year [1][2]. - The company is expanding its business into high-growth and high-profit regions in the central and western provinces, with retail gas sales in the northwest and southwest growing by 12% and 19.2% respectively [1]. Summary by Sections Financial Performance - The company achieved a total revenue of RMB 1870.46 billion, with a net profit of RMB 59.60 billion and a core profit of RMB 63.59 billion for the year [1]. - The average procurement price for gas was RMB 2.37 per cubic meter, while the selling price was RMB 2.84 per cubic meter, resulting in a weighted average price difference of RMB 0.47 per cubic meter [2]. LNG Operations - The LNG receiving stations in Tangshan and Jiangsu had a gasification loading volume of 15.940 billion cubic meters, a decrease of 2.4% year-on-year, with an average load factor of 87.6%, down 3 percentage points [2]. - The operational efficiency of LNG plants improved, with 13 plants achieving profitability and one plant reducing losses. The processing volume increased to 3.55 billion cubic meters, a year-on-year increase of 25.6% [2]. Exploration and Production - The exploration and production segment faced significant impacts due to the expiration of contracts for the Liaohe and Peru oil fields. The company reported a crude oil sales volume of 8.29 million barrels, a decrease of 0.92 million barrels or 10% year-on-year, with an average realized price of USD 66.7 per barrel [3]. Profit Forecast - The profit forecasts for 2025 and 2026 have been revised down to RMB 6.414 billion and RMB 7.011 billion respectively, with a new forecast for 2027 set at RMB 7.656 billion. The EPS for 2025, 2026, and 2027 is projected to be RMB 0.74, RMB 0.81, and RMB 0.88 respectively [4].

Financial Performance - Total natural gas sales volume increased by 9.91% to 54,170 million cubic meters in 2024 from 49,285 million cubic meters in 2023[4] - Revenue rose by 5.46% to RMB 187,046 million in 2024 compared to RMB 177,354 million in 2023[4] - Profit attributable to shareholders increased by 4.89% to RMB 5,960 million in 2024 from RMB 5,682 million in 2023[7] - Basic earnings per share grew by 4.89% to RMB 68.83 in 2024, up from RMB 65.62 in 2023[7] - Core profit attributable to shareholders increased by 3.50% to RMB 6,359 million in 2024 from RMB 6,144 million in 2023[4] - Total revenue for the year ended December 31, 2024, was RMB 191,404 million, an increase from RMB 182,861 million in 2023, representing a growth of approximately 4.3%[17] - Revenue from external customers for 2024 was RMB 187,046 million, compared to RMB 177,354 million in 2023, indicating an increase of about 5.5%[17] - The profit before tax for 2024 was RMB 12,635 million, slightly up from RMB 12,593 million in 2023, reflecting a marginal increase of 0.3%[19] - Total revenue for 2024 reached RMB 187,046 million, an increase of 5.5% from RMB 177,354 million in 2023[21] - Natural gas sales contributed RMB 152,090 million, up from RMB 140,600 million, reflecting a growth of 8.6%[21] Dividends and Shareholder Returns - The company declared an interim dividend of RMB 31.58 per share, an increase of 11.28% from RMB 28.38 per share in 2023[4] - The company plans to distribute a final dividend of RMB 1,314 million for 2024, compared to no dividend in 2023[28] - The proposed final dividend for 2024 is RMB 0.1517 per share, totaling approximately RMB 1,314 million, compared to RMB 2,457 million for the 2023 final dividend[79] - The dividend payout ratio for 2024 is approximately 43%, an increase from 40% in 2023[79] - The company has established a three-year dividend distribution plan aiming for a payout ratio of 45% by the fiscal year ending December 31, 2025[70] Assets and Liabilities - Total assets decreased slightly to RMB 143,390 million in 2024 from RMB 143,519 million in 2023[9] - Total equity increased to RMB 88,835 million in 2024, up from RMB 85,783 million in 2023[9] - Current liabilities decreased to RMB 35,676 million in 2024 from RMB 34,583 million in 2023[9] - Long-term borrowings decreased significantly to RMB 14,329 million in 2024 from RMB 19,027 million in 2023[9] - Total liabilities decreased to RMB 25,224 million in 2024 from RMB 27,800 million in 2023, a decline of 9.3%[32] - The company reported an increase in investments in associates to RMB 8,567 million in 2024 from RMB 7,980 million in 2023[19] - The company’s segment assets for 2024 were RMB 127,236 million, down from RMB 128,001 million in 2023[19] Operational Efficiency - The company’s operating cash flow was robust at RMB 12.585 billion, indicating strong financial health and operational efficiency[40] - The company’s depreciation, amortization, and impairment expenses totaled RMB 5,160 million for 2024, compared to RMB 4,992 million in 2023, indicating an increase of about 3.4%[17] - The average annual interest rate for capitalized borrowing costs was 3.41% in 2024, down from 3.94% in 2023[23] - Interest expenses decreased to RMB 803 million in 2024 from RMB 960 million in 2023, a reduction of 16.4%[23] - Employee compensation costs were approximately RMB 5.83 billion, a decrease of 2.4% from RMB 5.97 billion last year, with employee compensation accounting for 3.12% of operating revenue[53] Customer and Market Growth - The total number of urban gas users surpassed 16.454 million, reflecting the company's expanding customer base[37] - The company reported a natural gas sales volume of 54.170 billion cubic meters, representing a year-on-year growth of 9.9%, with retail gas volume increasing by 8.1% to 32.757 billion cubic meters[40] - The LPG sales volume was 5.7838 million tons, showing a slight increase of 0.3% year-on-year, while revenue from LPG sales decreased by 4.5% to RMB 25.601 billion[42] - The company’s LNG processing and storage operations demonstrated improved efficiency, with 14 LNG plants achieving a processing volume of 3.550 billion cubic meters, a year-on-year increase of 25.6%[43] Strategic Initiatives - The company is actively pursuing joint ventures in the gas industry, with eight quality urban gas projects underway to enhance long-term growth prospects[40] - The company aims to enhance its marketing strategy and focus on green, safe, and efficient development while optimizing its service ecosystem[45] Miscellaneous - The company has no significant acquisitions or disposals during the year[63] - The company faces foreign exchange risks due to borrowings denominated in currencies other than RMB[61] - The company has no significant contingent liabilities that would adversely affect its financial position[67] - The company employed 24,809 employees globally as of December 31, 2024, a decrease from 27,138 employees in 2023[66] - The company pledged RMB 1,878 million in borrowings against natural gas receivables, up from RMB 94 million in 2023[62]

Investment Rating - The report assigns a "Buy" rating to the company, Kunlun Energy [10][106]. Core Views - In the current environment of declining interest rates and a focus on dividends due to national reforms, the decrease in oil and gas prices is expected to improve cost conditions, leading to a reevaluation and second pricing of Kunlun Energy as a dividend asset [4][10]. - Compared to its peers, Kunlun Energy has stable natural gas sales price differentials, a leading position in the central and western regions, the ability to accommodate the industrial transfer of high-energy-consuming enterprises, and a relatively strong capacity for dividend enhancement [4][10]. Summary by Sections Company Overview - Kunlun Energy is one of the five major gas companies in China, with its market performance historically weaker than its peers due to significant impacts from oil price fluctuations [6][15]. - The company has shifted its focus from upstream exploration and production to downstream natural gas sales, reducing its cyclical attributes and enhancing its utility characteristics [6][15]. Strategic Positioning - The company has established a comprehensive natural gas industry chain, focusing on terminal natural gas sales, LPG sales, LNG processing and storage, and exploration and production [7][28]. - Kunlun Energy has expanded its natural gas sales business, benefiting from internal synergies, with LNG receiving station load rates exceeding industry averages [7][32]. Market Dynamics - The macroeconomic environment is improving, and the "dual carbon" strategy is driving domestic natural gas consumption growth [8][50]. - Kunlun Energy has a strong presence in the central and western natural gas markets, with significant sales regions including Xinjiang, Yunnan, Gansu, and Hubei, which will benefit from the industrial transfer of high-energy-consuming enterprises [8][52]. Financial Performance - The company is expected to achieve revenues of CNY 59.47 billion, CNY 62.93 billion, and CNY 66.08 billion from 2024 to 2026, with corresponding EPS of CNY 0.69, CNY 0.73, and CNY 0.76 [10][106]. - The report highlights that Kunlun Energy's dividend capacity is relatively strong compared to its peers, supported by a good asset structure and cash flow [9][90]. Investment Outlook - The report suggests that Kunlun Energy's valuation may improve due to its stable natural gas sales price differentials and strong dividend potential, especially as the company focuses on enhancing shareholder returns [9][90]. - The anticipated capital expenditure reduction and improved asset structure further support the company's ability to increase dividends [9][90].

Investment Rating - The report maintains a "Buy" rating for Kunlun Energy (135 HK) with a target price adjusted to HKD 9.08, indicating a potential upside of 16.9% from the current price of HKD 7.77 [2][12]. Core Insights - The report highlights that the warm winter has slightly impacted retail gas sales, leading to a downward adjustment in profit forecasts for Kunlun Energy. The core earnings for 2024-2026 have been revised down by 5.4%, 2.9%, and 3.6% respectively [2][5]. - The company is expected to see a retail gas sales growth of 8.6% for the full year of 2024, despite a year-on-year decline in natural gas demand starting November 2024 [5]. - The LNG receiving station's utilization rate for 2024 has been adjusted down by 1 percentage point to 89% due to a projected 1% year-on-year decline in natural gas imports [5]. Financial Forecasts - Revenue projections for Kunlun Energy are as follows: - 2024E: RMB 188,386 million - 2025E: RMB 202,300 million - 2026E: RMB 215,037 million [4][14]. - Net profit estimates have been revised to: - 2024E: RMB 6,466 million - 2025E: RMB 7,216 million - 2026E: RMB 7,883 million, reflecting decreases of 5.4%, 2.9%, and 3.6% respectively [4][14]. Operational Data - The forecasted gas sales volume is expected to grow as follows: - 2024E: 32.9 billion cubic meters - 2025E: 35.9 billion cubic meters - 2026E: 38.8 billion cubic meters, with growth rates of 8.6%, 9.0%, and 8.1% respectively [6]. - The LNG processing volume is projected to increase to 3.27 billion cubic meters in 2024, with a utilization rate of 52% [6]. Dividend Policy - The management has set a dividend payout target of 43% for 2024, increasing to 45% in 2025, with expected dividend yields of 4.4% and 5.1% respectively, which remains attractive [5].