KUNLUN ENERGY(00135) 东吴证券·2024-08-29 12:14Investment Rating - Buy (Maintained) [1] Core Views - The company reported a revenue of 929.2 billion yuan in H1 2024, a year-on-year increase of 6.7%, and a net profit attributable to the parent company of 3.31 billion yuan, up 2.6% year-on-year [1] - The company announced its first interim dividend of 16.41 cents per share, with a payout ratio of 43%, and plans to increase the dividend ratio to 45% in 2025 [1] - The company's natural gas sales business saw a 9.6% increase in revenue and a 2.4% increase in pre-tax profit, with retail gas volume growing by 10.3% year-on-year [1] - The LNG processing and storage business experienced an 18.0% increase in revenue and a 22.9% increase in pre-tax profit, with processing volume up 61.7% year-on-year [1] - The LPG sales business saw a 6.6% decrease in revenue but a 32.6% increase in pre-tax profit, with improved regional resource allocation and higher retail share [1] - The exploration and production business revenue and pre-tax profit declined by 85.5% and 39.8% respectively, due to the expiration of exploration contracts in Liaoning and Peru [1] Business Performance - The company's retail gas volume has grown at a compound annual growth rate (CAGR) of 16.0% from 2018 to 2023, significantly higher than the national average of 7.1% [1] - The company's industrial gas consumption has been driven by the national policy encouraging the transfer of manufacturing industries to the central and western regions and Northeast China [1] - The company benefits from the strong resource support of its parent company, China National Petroleum Corporation (CNPC), which holds a 57.58% stake in the company [1] Financial Forecasts - The company's revenue is expected to grow from 177.726 billion yuan in 2023 to 210.679 billion yuan in 2026, with a CAGR of 6.47% [1][3] - Net profit attributable to the parent company is forecasted to increase from 5.682 billion yuan in 2023 to 7.060 billion yuan in 2026, with a CAGR of 7.63% [1][3] - The company's EPS is projected to rise from 0.66 yuan in 2023 to 0.82 yuan in 2026, with a P/E ratio decreasing from 10.80 to 8.69 over the same period [1][3] Valuation - The company's current P/E ratio is 10.80, with a P/B ratio of 0.72 and an EV/EBITDA ratio of 2.98 [3] - The company's ROE is expected to increase from 8.96% in 2023 to 9.50% in 2026, reflecting steady profitability [3]