Core Viewpoint - The company reported a mixed performance for the first half of 2025, with revenue growth but a decline in net profit, highlighting the challenges faced in the natural gas sector amidst a slight decrease in national consumption [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 97.543 billion yuan, a year-on-year increase of 4.97% [1] - Shareholder profit attributable to the company was 3.161 billion yuan, a decrease of 4.36% year-on-year [1] - The interim dividend was set at 0.1660 yuan per share, an increase of 0.0019 yuan per share compared to the previous year [1] Group 2: Natural Gas Sales - The company maintained a high growth rate in natural gas sales, with total sales volume reaching 29.095 billion cubic meters, a year-on-year increase of 10.0% [1] - Retail gas volume was 16.666 billion cubic meters, up 2.2% year-on-year, while distribution and trading gas volume increased by 22.6% to 12.429 billion cubic meters [1] - The average selling price of natural gas was 2.77 yuan per cubic meter, while the average purchase price was 2.33 yuan per cubic meter, resulting in a weighted average price difference of 0.44 yuan per cubic meter, a decrease of 0.01 yuan year-on-year [1] Group 3: LNG and LPG Business - LNG receiving station processing volume was 7.899 billion cubic meters, a year-on-year increase of 1.7%, with an average load factor of 86.8%, up 1.4 percentage points [2] - Revenue from LNG receiving stations was 2.382 billion yuan, a year-on-year increase of 2.3%, with a tax profit of 1.701 billion yuan, up 5.4% [2] - LPG sales volume reached 3.0684 million tons, a year-on-year increase of 4.9%, but revenue was 13.020 billion yuan, a slight increase of 1.0%, with tax profit decreasing by 3.0% to 544 million yuan [2] Group 4: Dividend and Investment Value - The company plans to distribute an interim dividend of 0.1660 yuan per share, with an expected annual payout ratio of 45% [3] - The anticipated dividend yield based on the current stock price is 4.92%, indicating stable investment value [3] - Projected earnings for 2025-2027 are 6.361 billion, 6.836 billion, and 7.366 billion yuan, with corresponding EPS of 0.73, 0.79, and 0.85 yuan, and PE ratios of 9.15, 8.51, and 7.90 respectively [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved a natural gas sales volume of 29.095 billion cubic meters in the first half of 2025, representing a year-on-year growth of 10.0%, despite a 0.9% decline in national natural gas consumption [9]. - The company's natural gas sales revenue reached 80.078 billion yuan, an increase of 6.1% year-on-year, while the pre-tax profit was 4.477 billion yuan, a decrease of 10.6% [2][5]. - The average load factor of LNG receiving stations was 86.8%, up 1.4 percentage points year-on-year, with a pre-tax profit of 1.701 billion yuan, reflecting a 5.4% increase [2][9]. - The company plans to distribute an interim dividend of 0.1660 yuan per share, indicating a steady increase in shareholder returns [5][9]. - The expected earnings per share (EPS) for 2025-2027 are projected to be 0.73 yuan, 0.79 yuan, and 0.85 yuan, with corresponding price-to-earnings (PE) ratios of 9.15, 8.51, and 7.90 [9]. Summary by Sections Company Performance - In the first half of 2025, the company reported operating revenue of 97.543 billion yuan, a year-on-year increase of 4.97%, and a net profit attributable to shareholders of 3.161 billion yuan, down 4.36% year-on-year [5]. - The average selling price of natural gas was 2.77 yuan per cubic meter, while the average purchase price was 2.33 yuan per cubic meter, resulting in a weighted average price difference of 0.44 yuan per cubic meter, a slight decrease from the previous year [9]. LNG and LPG Business - The LNG receiving station processed 7.899 billion cubic meters, with a revenue of 2.382 billion yuan, while the LNG factory's processing volume was 1.752 billion cubic meters, generating a revenue of 1.989 billion yuan [9]. - LPG sales volume reached 3.0684 million tons, with a revenue of 13.020 billion yuan, reflecting a year-on-year increase of 1.0% [9]. Dividend and Investment Value - The company’s dividend payout ratio is expected to reach 45% for the year, with a current dividend yield of 4.92%, highlighting its stable investment value [2][9].

Investment Rating - The report maintains a "Buy" rating for Kunlun Energy [2][7][17] Core Views - The company reported a revenue of 97.543 billion RMB for the first half of 2025, a year-on-year increase of 4.97%, while the net profit attributable to shareholders decreased by 4.36% to 3.161 billion RMB, slightly below expectations [7] - Natural gas sales volume increased by 10.05% to 29.095 billion m³, driven by a significant rise in industrial gas consumption [7] - The average load rate of LNG receiving stations improved to 86.8%, with a substantial increase in LNG loading volume by 75.5% [7] - The company plans to increase the dividend payout ratio to 45% for 2025, with a current dividend yield of approximately 4.4% [7] Financial Data and Profit Forecast - Revenue projections for 2023 to 2027 are as follows: 177.354 billion RMB (2023), 187.046 billion RMB (2024), 193.901 billion RMB (2025E), 204.563 billion RMB (2026E), and 213.881 billion RMB (2027E) [6][8] - Net profit attributable to shareholders is forecasted to be 5.682 billion RMB (2023), 5.960 billion RMB (2024), 5.980 billion RMB (2025E), 6.254 billion RMB (2026E), and 6.573 billion RMB (2027E) [6][8] - Earnings per share (EPS) is projected to be 0.66 RMB (2023), 0.69 RMB (2024), 0.69 RMB (2025E), 0.72 RMB (2026E), and 0.76 RMB (2027E) [6][8] - The price-to-earnings (PE) ratio for 2025-2027 is estimated at 10.2, 9.8, and 9.3 respectively [7]