Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 1.17% to close at 23,698.65 points and the Tech Index dropping by 1.58% to 5,208.23 points [1] Sector Performance - Oil and gas stocks showed renewed activity, while biopharmaceutical B shares increased in value. However, sectors such as new energy vehicles, technology, and domestic real estate stocks faced declines, and rare earth concept stocks experienced a pullback [1] Notable Stock Movements - Jixing New Energy (03395.HK) surged by 337.5%, while Yuanheng Gas (00332.HK) rose by 50%, United Energy Group (00467.HK) increased by 35.7%, and Baiqin Oil Services (02178.HK) gained 47.8% [1] - Beijing Construction (00925.HK) resumed trading with a rise of over 210%, as it plans to privatize and delist [1] - Lehua Entertainment (02306.HK) saw an increase of nearly 30% [1] - Conversely, companies like Li Auto (02015.HK), China Resources Land (01109.HK), and Meituan (03690.HK) fell by 3.7%, while Alibaba (09988.HK) and Kuaishou (01024.HK) dropped by over 2.5% [1]

石油概念港股涨幅扩大 山东墨龙一度涨超160% 智通财经6月13日电，石油概念港股午后涨幅扩大，山东墨龙(00568.HK)一度涨超160%。截至发稿，山东墨龙涨131%，中石化油 服(01033.HK)涨50%，联合能源集团(00467.HK)涨30%。据央视新闻报道，6月13日以空军对伊朗境内数十个与核计划和其他军事 设施相关的目标发动空袭。随后据环球网报道，沙特媒体哈达斯当地时间13日援引以色列媒体消息报道称，以色列城市特拉维夫 遭袭击。布伦特原油日内盘中一度涨超13%。 ...

Market Overview - The Hong Kong stock market experienced a collective pullback on May 28, with the Hang Seng Index down by 0.53%, the Hang Seng Tech Index down by 0.15%, and the Hang Seng China Enterprises Index down by 0.31% [1] - Despite the overall decline, the energy sector showed resilience, with companies like Yanzhou Coal Mining and China Shenhua Energy seeing gains of 2.31% and 1.2% respectively [1] Sector Performance - The consumer sector showed a clear "high cut low" trend, with brands like Pop Mart and Mixue experiencing significant pullbacks after reaching new highs, dropping 7.12% and 5.53% respectively [2] - The technology sector also faced mixed results, with Kuaishou's net profit exceeding expectations, leading to a 5.95% increase in its stock price, while other tech giants like Meituan and Tencent saw declines [2] Capital Flows - Southbound capital saw a net inflow of 291.12 billion yuan in May, with a significant portion directed towards defensive sectors, particularly the financial sector, which attracted 223.9 billion yuan [4] - The trend indicates a structural change in capital flows, with individual investors dominating the southbound capital, making the market more sensitive to changes in sentiment [4] Valuation and Market Sentiment - Analysts suggest that the current valuation of the Hong Kong stock market is at a historical average level, with potential for recovery in both valuation and earnings, particularly in sectors benefiting from domestic demand policies [6] - The market is expected to experience a rebound in the third quarter, supported by improved liquidity and the return of quality companies to the Hong Kong market [6] Future Outlook - The ongoing listing of quality companies and the influx of capital are expected to enhance the asset quality and liquidity of the Hong Kong market [6] - Analysts predict that the combination of domestic growth policies and the resurgence of the AI industry will reshape the valuation of the technology sector, leading to a dual recovery in valuation and earnings for the Hong Kong market [6]

Core Viewpoint - The resignation of Zhang Hongwei from the position of chairman and executive director of United Energy Group is a significant event following the regulatory penalties imposed on him for financial misconduct related to the "Oriental System" [3][4][6]. Group 1: Zhang Hongwei's Resignation and Its Implications - Zhang Hongwei will resign from his roles at United Energy Group by the end of June, following a penalty of 10 million yuan and a lifetime ban from the securities market due to violations of securities laws [3][6]. - The resignation may raise concerns about the stability of the management team at United Energy Group, potentially leading to stock price volatility and affecting the synergy among companies within the "Oriental System" [4][8]. - Zhang's departure from multiple listed companies, including Minsheng Bank and United Energy Group, indicates a significant shift in the leadership structure of the "Oriental System" [7][8]. Group 2: Financial Misconduct and Consequences - The Oriental Group was found to have inflated its revenue by 16.13 billion yuan and costs by 16.073 billion yuan from 2020 to 2023, leading to severe public backlash and regulatory scrutiny [6]. - The China Securities Regulatory Commission (CSRC) has stated that financial fraud severely harms investor interests and will enforce strict penalties for such misconduct, including potential delisting for companies involved in major violations [5][6]. - The Oriental Group is currently undergoing restructuring due to various debt issues and has already been delisted, indicating a broader impact on the financial health of the "Oriental System" [8]. Group 3: United Energy Group's Business Performance - United Energy Group operates in oil and clean energy sectors, with significant projects in regions such as the Middle East and North Africa, and is the largest foreign oil and gas producer in Pakistan [10]. - The company reported a net loss of 1.707 billion HKD in 2023, but projected a revenue of 17.523 billion HKD in 2024, reflecting a year-on-year growth of 28.9% [10]. - The stock price of United Energy Group experienced a dramatic decline, dropping from approximately 0.6 HKD to 0.26 HKD in June 2024, representing a 55.83% decrease and a market value loss of nearly 8.8 billion HKD [10].

Group 1 - The core viewpoint of the articles highlights the performance of the China Securities Hong Kong 300 Energy Index, which has seen a decline of 7.31% in the past month, 8.77% in the past three months, and 10.93% year-to-date [1] - The top ten holdings of the China Securities Hong Kong 300 Energy Index include China National Offshore Oil (41.44%), PetroChina (17.49%), China Shenhua Energy (13.95%), Sinopec (13.62%), and others, indicating a concentration in a few major companies [1] - The index is designed to reflect the overall performance of different industries in the Hong Kong market, with a base date of December 31, 2004, set at 1000.0 points [1] Group 2 - The market segments represented in the China Securities Hong Kong 300 Energy Index are entirely from the Hong Kong Stock Exchange, with fuel refining accounting for 42.01%, integrated oil and gas companies for 31.12%, and coal for 24.17% [2] - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December, ensuring that the weight factors are updated accordingly [2] - Adjustments to the index samples occur in response to special events affecting the companies, such as mergers or delistings, ensuring the index remains reflective of the current market landscape [2]

Financial Performance - Revenue for the year 2024 reached HKD 17,522,924 thousand, representing a 28.9% increase compared to HKD 13,591,075 thousand in 2023[6] - The company reported a net profit of HKD 1,558,118 thousand for 2024, a significant recovery from a loss of HKD 1,707,401 thousand in 2023[6] - The group recorded a profit attributable to equity holders of approximately HKD 1,558,132,000, a significant turnaround from a loss of approximately HKD 1,707,385,000 in the previous year[43] - The gross profit for the reporting period was approximately HKD 3,301,651,000, with a gross profit margin of 18.8%, down 25.6% from last year's gross profit of HKD 4,439,240,000[59] - The adjusted EBITDA for the reporting period is approximately HKD 7,991,874,000, a decrease of 10.1% from HKD 8,885,063,000 in the previous year, mainly due to a decline in average net realized sales prices[72] - Oil and gas sales amounted to approximately USD 2,477,102,000, a 10.7% increase from USD 2,238,415,000 in the previous year[47] - The average realized price for oil and gas was approximately USD 62.58 per barrel of oil equivalent, a slight increase of 2.1% from USD 61.31 per barrel of oil equivalent last year[47] Production and Exploration - Average daily production for the year was 180,554 barrels of oil equivalent, with an average equity daily production of 108,079 barrels of oil equivalent[12] - The company achieved 11 commercial discoveries, contributing to a 2P reserve of approximately 665.6 million barrels of oil equivalent[12] - Daily total production target is set between 178,900 to 204,200 barrels of oil equivalent, with equity production between 104,200 to 120,600 barrels of oil equivalent[19] - The average daily production for the group reached approximately 180,554 barrels of oil equivalent, a 7.6% increase from last year's average of 167,826 barrels[28] - The average daily production in Pakistan was 36,627 barrels of oil equivalent, while in the Middle East and North Africa, it was 71,452 barrels of oil equivalent[99] - The group achieved 11 commercial discoveries in 2024, further solidifying its resource base and supporting long-term production growth[33] Capital Expenditure and Financial Position - Capital expenditure is projected at USD 750 million for exploration, development, and operational optimization[19] - Total assets increased by 1.1% to HKD 26,120,400 thousand, while net assets rose by 3.6% to HKD 13,295,380 thousand[6] - The group maintained a strong financial position with low leverage, providing a solid foundation for future growth and capital expansion[35] - The financing costs for the reporting period were approximately HKD 351,143,000, an increase of 19.6% from HKD 293,634,000 in the previous year[62] - The net cash outflow for financing activities in 2024 is approximately HKD 1,591,065,000, primarily due to special dividend distribution of HKD 1,033,984,000 and bank loan repayment of HKD 2,578,772,000[66] Strategic Initiatives and Future Outlook - The company plans to complete a strategic acquisition in Egypt, which is expected to double its asset portfolio[12] - The outlook for 2025 anticipates continued growth opportunities amid geopolitical and economic uncertainties, with rising oil demand expected[15] - The company is actively investing in renewable energy as part of its strategy to transition into a diversified energy leader[13] - The company aims to establish a global digital center and procurement center to achieve full digital integration by 2026[18] - The group anticipates global oil demand to increase by 1.45 million barrels per day in 2025, reaching an average of 105.2 million barrels per day[76] Health, Safety, and Environmental Standards - The company maintained a zero fatality and zero major incident record, demonstrating its commitment to health, safety, security, and environment (HSSE) standards[12] - The group emphasizes health, safety, security, and environmental (HSSE) execution as a key focus area, achieving all HSSE key performance indicators during the reporting period[139] Corporate Governance - The company has maintained compliance with corporate governance standards, although the CEO position is currently vacant[102] - The board confirmed that the consolidated financial statements comply with legal requirements and applicable accounting standards[114] - The company has confirmed compliance with the corporate governance code as per the listing rules, except for a specific provision[181] - The company has established several board committees, including audit, remuneration, and nomination committees, to oversee specific areas and assist in board responsibilities[115] Shareholder Information - The proposed final dividend for the year ending December 31, 2024, is HKD 0.05 per share, amounting to approximately HKD 1,292,480,000[67] - The company reported a total reserve available for distribution to shareholders of approximately HKD 6,402,448,000 as of December 31, 2024, down from HKD 7,436,432,000 as of December 31, 2023[183] - The last annual general meeting held on June 6, 2024, reappointed the auditor, which will be presented for resolution at the upcoming annual general meeting[193]

Group 1 - The core viewpoint of the news highlights the recent performance of the Hong Kong stock market, specifically the decline of the Hang Seng Index and the notable increase in the share price of United Energy Group [1] - United Energy Group's stock price increased by 9.21% to HKD 0.415 per share, with a trading volume of 244 million shares and a turnover of HKD 97.95 million, indicating significant market activity [1] - Over the past month, United Energy Group has seen a cumulative increase of 4.11%, and a year-to-date increase of 7.04%, which is underperforming compared to the Hang Seng Index's increase of 17.54% [2] Group 2 - Financial data shows that as of December 31, 2024, United Energy Group achieved total revenue of CNY 16.227 billion, representing a year-on-year growth of 28.93%, and a net profit attributable to shareholders of CNY 1.443 billion, reflecting a substantial year-on-year increase of 191.26% [2] - The company's gross profit margin stands at 18.84%, with a debt-to-asset ratio of 49.1%, indicating a moderate level of financial leverage [2] - Currently, there are no institutional investment ratings for United Energy Group, and its price-to-earnings ratio is reported at -4.16 times, ranking 35th in the industry, which has an average price-to-earnings ratio of 34.9 times [3]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 17,522,924 thousand, an increase of 28.9% compared to HKD 13,591,075 thousand in 2023[2] - Gross profit decreased by 25.6% to HKD 3,301,651 thousand from HKD 4,439,240 thousand in the previous year[2] - The company reported a profit of HKD 1,558,118 thousand for the year, recovering from a loss of HKD 1,707,401 thousand in 2023[2] - Basic earnings per share for the year were HKD 6.04, compared to a loss of HKD 6.53 per share in the previous year[4] - Adjusted EBITDA decreased by 10.1% to HKD 7,991,874 thousand from HKD 8,885,063 thousand in 2023[2] - Total revenue for the group in 2024 reached HKD 17,522,924,000, an increase of 29.1% from HKD 13,591,075,000 in 2023[22] - The group reported a total investment and other income of HKD 222,411,000 in 2024, compared to HKD 213,279,000 in 2023, reflecting a slight increase of 4.3%[25] - The group recognized a loss of HKD 438,337,000 in 2024 from other gains and losses, a significant improvement from a loss of HKD 5,127,278,000 in 2023[26] - The total classified profit for 2024 was HKD 1,717,421, down from HKD 3,202,264 in 2023, indicating a decrease of about 46.3%[29][31] - Interest income increased to HKD 69,919 in 2024 from HKD 48,997 in 2023, reflecting a growth of approximately 42.6%[29][30] - The company reported a significant impairment loss on intangible assets of HKD 2,263,951 in 2023, which was not present in 2024[30][31] - The effective tax rate for the reporting period was approximately -6.8%, down from 15.5% last year, primarily due to favorable tax authority rulings[88] Production and Reserves - Average daily production in Pakistan decreased by 14.9% to 36,627 barrels of oil equivalent per day from 43,017 in 2023[2] - Average daily production in the Middle East and North Africa increased by 24.5% to 71,452 barrels of oil equivalent per day from 57,390 in 2023[2] - Year-end net proven reserves in Pakistan increased by 1.7% to 49.2 million barrels of oil equivalent from 48.4 million in 2023[2] - Year-end net proven reserves in the Middle East and North Africa decreased by 7.7% to 110.6 million barrels of oil equivalent from 119.8 million in 2023[2] - The average daily production reached approximately 180,554 barrels of oil equivalent, an increase of 7.6% from last year's average of 167,826 barrels of oil equivalent[63] - The cumulative production for the year was approximately 66.08 million barrels of oil equivalent, up 7.9% from approximately 61.26 million barrels of oil equivalent in the previous year[63] - In Pakistan, the average daily production was approximately 51,896 barrels of oil equivalent, a decrease of 17.3% compared to the previous year[64] - In Iraq, the average daily production in the B9 block was approximately 86,832 barrels of oil equivalent, an increase of 37.1% compared to the previous year[65] - The average daily production in Egypt for 2024 is approximately 15,872 barrels of oil equivalent, a decrease of 6.4% compared to the previous year[67] - The cumulative production in Egypt for the year is about 5.8 million barrels of oil equivalent, with a gas-to-oil ratio of approximately 99%[67] Assets and Liabilities - Total assets increased by 1.1% to HKD 26,120,400 thousand from HKD 25,829,150 thousand in the previous year[2] - Total equity attributable to owners increased to HKD 13,289,971 thousand in 2024 from HKD 12,830,726 thousand in 2023, representing a growth of approximately 3.57%[7] - Total classified assets rose to HKD 22,033,729 in 2024 from HKD 21,763,246 in 2023, marking an increase of about 1.2%[31] - Total classified liabilities increased significantly to HKD 10,562,107 in 2024 from HKD 7,946,273 in 2023, representing a rise of approximately 33.5%[31] - Non-current assets totaled HKD 14,251,436 in 2024, an increase from HKD 13,698,361 in 2023, reflecting a growth of about 4%[33] - The company reported a potential tax liability of approximately HKD 898,741,000 as of December 31, 2024, compared to HKD 807,579,000 in 2023[54] - The company has provided guarantees for United Energy Pakistan Limited to fulfill its obligations under the concession agreement[54] Dividends and Shareholder Returns - The company has declared a special dividend of HKD 0.04 per ordinary share for 2024, totaling HKD 1,033,984,000, compared to HKD 1,051,597,000 for 2023[43] - A final dividend of HKD 0.05 per share was proposed, amounting to approximately HKD 1,292,498,000, compared to no dividend last year[92] - The company's available reserves for distribution to shareholders amounted to approximately HKD 6,402,448,000 as of December 31, 2024, down from HKD 7,436,432,000 a year earlier[118] Strategic Initiatives and Acquisitions - The company has entered into an agreement to acquire Apex International Energy Holdings I for a total consideration of approximately HKD 1,170,000,000 (around USD 150,000,000) and deferred consideration of HKD 54,600,000 (around USD 7,000,000)[53] - The acquisition of 52% of the issued shares of Oriental Group Beijing Investment Holding Limited is set at a purchase price of approximately HKD 148,200,000 (around USD 19,000,000)[53] - The company completed the acquisition of 100% equity in Green Profit EOOD for a base price of €37,500,000, aimed at constructing a total of 250 MW solar power facilities in Bulgaria[105] Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which may impact the classification of liabilities[11] - The company has not early adopted several new standards and interpretations that are expected to be effective in future periods, indicating a cautious approach to regulatory changes[14] - The company is subject to the corporate governance code as per the listing rules[129] - The independent non-executive directors are required to rotate every three years according to the company's articles of association[125] Operational Efficiency and Future Outlook - The group aims to enhance operational efficiency and focus on high-potential asset investments to drive sustainable growth and value creation[101] - The average daily production target for 2025 is set between 178,900 and 204,200 barrels of oil equivalent, with capital expenditures expected to reach USD 750 million to support exploration and development plans[97] - The group plans to explore opportunities to optimize its capital structure, including potential issuance of corporate bonds in the international debt capital market within the next 12 months[104]

中国能源 威廉·冯，CFA (852) 3900 0826 wayne fung@cmbi.com.hk 2025年3月3日 中国民生银行国际 | 全球市场 | 股权研究 | 覆盖终止 联合能源（467 HK） 终止覆盖 鉴于资源分配更加合理，我们终止了对联合能源的覆盖。所有之前的推荐自覆 盖终止之日起不再有效。 请阅读最后一页的分析师认证和重要披露，更多来自彭博社的报告：响应CMBR或http://www.cm bi.com.hk 1 2025年3月3日 披露与免责声明 分析师认证 该研究报告内容（全部或部分）的主要研究员声明，关于本报告中所涵盖的证券或发行人：（1）所表达的所有观点准确反映了其个人对该证券或发行人的看法 ；并且（2）其薪酬的任何部分均未、现在或将来直接或间接与其在本报告中表达的特定观点相关。 此外，分析师确认，分析师及其关联人（根据香港证券及期货事务监察委员会发布的《行为守则》定义）在以下方面没有参与或交易本研究报告涵盖的股票： （1）在报告发布前30个日历日内未曾买卖本报告涵盖的股票；（2）在报告发布后3个营业日内不会买卖本报告涵盖的股票；（3）未担任本报告涵盖的任何香 港上市公司的董事 ...

Wayne FUNG, CFA (852) 3900 0826 waynefung@cmbi.com.hk PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk 1 3 Mar 2025 3 Mar 2025 CMB International Global Markets | Equity Research | Coverage Termination United Energy (467 HK) Termination of Coverage In view of better allocation of resources, we terminate coverage of United Energy. All previous recommendations are no longer valid, as of the date of termination of cove ...