昆仑能源：优质燃气分销商，业绩稳健

Investment Rating - The report assigns a "Buy" rating to the company with a 6-month target price of HKD 9.61, compared to a current price of HKD 8.32 [3][28]. Core Insights - The company, Kunlun Energy, is the only platform enterprise in China engaged in natural gas terminal sales and comprehensive utilization, benefiting from the trend of industrial transfer to the central and western regions of China [4][27]. - The company has a strong financial position with low debt levels and sufficient cash on hand, and it has announced a three-year dividend plan with increasing payout ratios [26][28]. - The natural gas sales segment accounts for nearly 80% of total revenue, with a significant focus on industrial and commercial customers [27][22]. Company Overview - Kunlun Energy was established as a red-chip company under the China National Petroleum Corporation (CNPC) and has transitioned from oil and gas exploration to focus on natural gas terminal sales since 2008 [2][9]. - The company operates 284 urban gas projects across 30 provinces, with an annual natural gas sales volume of 50 billion cubic meters [4][27]. - The shareholder structure includes CNPC holding 56.05% and Sinopec holding 1.48% [3][11]. Financial Performance - The company reported a total market capitalization of HKD 72.04 billion and an average trading volume of HKD 111.92 million [3]. - Revenue from natural gas sales is projected to grow at a CAGR of 12% over three years, with the company actively expanding its customer base [22][27]. - The forecasted net profits for 2024, 2025, and 2026 are RMB 6,060 million, RMB 6,484 million, and RMB 6,927 million, respectively, with corresponding EPS of 0.70, 0.75, and 0.80 [28][31]. Business Segments - The company's revenue is divided into four main segments: natural gas sales (80%), LPG sales (15%), LNG processing and storage (5%), and exploration and production (1%) [27][41]. - The LNG processing and storage segment has the highest and most stable profit margins, while the natural gas sales segment shows consistent growth [20][27]. Market Position - Kunlun Energy is positioned as a leading natural gas distributor in China, with a significant market share in urban gas distribution [22][27]. - The company is expected to benefit from the increasing demand for natural gas in China, projected to grow significantly in the coming years [76][79].