Shenwan Hongyuan Securities·2026-03-26 08:26Investment Rating - The report maintains a "Buy" rating for Kunlun Energy [1][6][4] Core Views - The company achieved a revenue of 193.979 billion RMB in 2025, a year-on-year increase of 3.71%, while the net profit attributable to shareholders decreased by 10.3% to 5.346 billion RMB [6][5] - Industrial gas sales and distribution trade volumes continue to grow significantly, with total natural gas sales reaching 59.255 billion cubic meters, up 9.4% year-on-year [6][5] - The company is expanding its city gas projects, adding 11 new projects and increasing its user base to 17.192 million by the end of 2025 [6][5] - The LNG processing and storage business saw a profit increase of 8.4% to 3.970 billion RMB, with a high average load rate of 90.8% for LNG receiving stations [6][5] - The LPG business also expanded, with sales volume increasing by 6.3% to 6.148 million tons, and profits expected to rise due to high oil prices [6][5] - A three-year dividend plan was announced, ensuring a minimum payout of 50% of net profit, enhancing investor returns [6][5] - The report forecasts net profits for 2026-2028 at 6.254 billion, 6.573 billion, and 6.733 billion RMB respectively, with corresponding EPS of 0.72, 0.76, and 0.78 RMB per share [6][5] Financial Data and Profit Forecast - Revenue projections for 2024 to 2028 are as follows: 187.046 billion, 193.979 billion, 206.720 billion, 207.128 billion, and 208.301 billion RMB [5][7] - Net profit attributable to shareholders is projected to be 5.960 billion, 5.346 billion, 6.254 billion, 6.573 billion, and 6.733 billion RMB for the same period [5][7] - The company’s PE ratios for 2026-2028 are estimated at 9.3, 8.8, and 8.6 times [6][5]