KUNLUN ENERGY (0135) AI Stock Analysis

• Market Cap: HK$68.84B
• Dividend Yield: 4.58%
• Average Volume (3M): 15.12M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.43
• Revenue Growth: 4.37%
• EPS Growth: 0.58%
• Country: US
• Employees: 24,809
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.41
• Shares Outstanding: 8,658,802,000
• 10 Day Avg. Volume: 15,166,776
• 30 Day Avg. Volume: 15,121,581
• PEG Ratio: 2.52
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 10.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$8.58
• Price Target Upside: 20.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$9.00 ▲(26.58% Upside)

Kunlun Energy's overall stock score is driven by its stable financial performance and attractive valuation. The company's strong balance sheet and low leverage are significant strengths, although cash flow challenges pose a risk. Technical analysis suggests balanced momentum, but potential overbought conditions should be monitored.

Positive Factors

Balance sheet strength

Low leverage and a ~45% equity ratio give Kunlun long-term financial flexibility. This reduces refinancing and solvency risk through commodity cycles, supports capital allocation to upstream projects and renewables, and preserves capacity for dividends or opportunistic M&A.

Integrated, diversified business model

Operating across exploration, transportation, refining and marketing creates diversified revenue streams and natural hedges. Midstream contracts and downstream margins smooth volatility from upstream production, while renewable investments position the company for structural energy transition over the medium term.

Consistent revenue growth and moderate returns

Steady mid-single-digit revenue growth with positive gross margins and mid-single-digit ROE indicates stable core operations. These metrics suggest enduring earnings capacity and operational competence, supporting reinvestment and shareholder returns if cash generation recovers.

Negative Factors

Operating cash flow shortfall

A zero operating cash flow reading in 2024 is a structural concern: it limits the firm's ability to self-fund capex, dividends, and working capital. Even with low leverage, persistent weak OCF forces reliance on external financing and constrains strategic flexibility over months to years.

Margin deterioration

Eroding gross and EBIT margins point to cost pressures or weaker pricing power. Sustained margin decline will compress profitability and free cash flow, reducing resources for reinvestment, debt service and dividends, and weakening resilience during lower commodity price environments.

Commodity price exposure

Revenue and cash generation remain structurally tied to volatile oil and gas prices. This exposure increases earnings and cashflow variability, complicates multi-year planning, and raises the risk that downturns will quickly impair liquidity and capital allocation despite operational strengths.

KUNLUN ENERGY Business Overview & Revenue Model

Company Description

KUNLUN ENERGY (0135) is a leading Chinese integrated energy company primarily engaged in the exploration, production, and sale of oil and natural gas. The company operates in various sectors, including upstream oil and gas exploration and production, midstream transportation, and downstream refining and marketing of petroleum products. KUNLUN ENERGY also invests in renewable energy projects, aiming to diversify its portfolio and contribute to sustainable energy solutions.

How the Company Makes Money

KUNLUN ENERGY generates revenue through multiple key streams: primarily from the sale of crude oil and natural gas produced from its exploration and production activities. The company capitalizes on fluctuating global energy prices, which can significantly impact its earnings. Additionally, KUNLUN ENERGY earns income from its midstream operations, which involve the transportation and storage of oil and gas, often through long-term contracts with other energy companies. The downstream segment contributes further revenue through refining operations and the marketing of refined petroleum products. Strategic partnerships with international energy firms and investments in renewable energy projects also enhance revenue potential and provide a buffer against market volatility.

KUNLUN ENERGY Financial Statement Overview

Summary

Kunlun Energy shows stable financial performance with a revenue growth rate of 5.45% and moderate profitability. The company has a strong balance sheet with a healthy equity ratio and low leverage. However, cash flow challenges due to zero operating cash flow in 2024 could impact liquidity.

Income Statement

Kunlun Energy demonstrated stable revenue growth with a positive revenue growth rate of 5.45% from 2023 to 2024. The gross profit margin was approximately 13.57%, and the net profit margin was 3.19% in 2024, indicating moderate profitability. However, the decline in gross profit and EBIT margins from the previous year could be concerning.

Balance Sheet

The company maintains a healthy equity ratio of 45.43% and a low debt-to-equity ratio of 0.37, suggesting strong financial stability and low leverage. ROE was 9.15%, indicating efficient use of equity to generate profits.

Cash Flow

Kunlun Energy's cash flow statement reveals challenges with operating cash flow at zero in 2024, possibly affecting liquidity. However, historical free cash flow generation was positive, showcasing potential for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	191.67B	187.05B	177.35B	171.94B	138.55B	109.25B
Gross Profit	24.98B	25.38B	26.26B	20.98B	18.03B	14.56B
EBITDA	16.10B	16.45B	18.55B	17.18B	15.98B	15.78B
Net Income	5.82B	5.96B	5.68B	5.23B	23.02B	6.06B
Balance Sheet
Total Assets	140.82B	143.39B	143.52B	138.89B	132.58B	154.99B
Cash, Cash Equivalents and Short-Term Investments	42.88B	45.09B	45.59B	39.48B	28.49B	16.27B
Total Debt	20.43B	24.28B	25.20B	25.85B	25.18B	28.34B
Total Liabilities	49.76B	54.55B	57.74B	58.19B	56.72B	70.46B
Stockholders Equity	66.99B	65.15B	63.45B	59.91B	56.27B	53.58B
Cash Flow
Free Cash Flow	6.31B	6.42B	9.23B	9.15B	4.14B	9.94B
Operating Cash Flow	11.55B	12.51B	14.41B	14.87B	12.00B	16.74B
Investing Cash Flow	440.00M	-3.49B	-1.06B	-18.45B	25.60B	-8.83B
Financing Cash Flow	-12.03B	-8.59B	-6.04B	-4.92B	-25.72B	-9.81B

KUNLUN ENERGY Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0135, the sentiment is Positive. The current price of 7.11 is below the 20-day moving average (MA) of 7.60, below the 50-day MA of 7.46, and below the 200-day MA of 7.41, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 67.53 is Neutral, neither overbought nor oversold. The STOCH value of 84.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0135.

KUNLUN ENERGY Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0603	72 Outperform	HK$822.10M	6.12	4.05%	―	-12.48%	―
0135	71 Outperform	HK$68.84B	10.97	8.88%	4.58%	4.37%	0.58%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0338	55 Neutral	HK$30.50B	-109.79	-0.59%	1.65%	-11.11%	62.07%
8270	52 Neutral	HK$154.23M	-3.38	-31.34%	―	-29.86%	-791.02%
0931	49 Neutral	HK$3.34B	-25.83	-40.82%	―	23.08%	23.40%
0332	40 Underperform	HK$111.28M	-0.05	―	―	-76.52%	-630.18%

KUNLUN ENERGY Corporate Events

Kunlun Energy Unveils Up to 1% On‑Market Share Buyback Plan

Kunlun Energy Company Limited has announced that its board may exercise an existing shareholder-approved mandate to repurchase up to 86.59 million shares, representing about 1% of its issued share capital, on the open market between now and the conclusion of its 2027 annual general meeting. The buyback, to be funded from existing cash resources with repurchased shares expected to be cancelled, is intended to take advantage of what the board views as a share price that undervalues the company’s intrinsic worth, aiming to enhance earnings per share and returns on capital while signalling confidence in the group’s future development; the programme will be carried out within Hong Kong listing and takeover rules, will not trigger a mandatory offer, and remains subject to market conditions and the board’s discretion, leaving timing, quantity and pricing of repurchases uncertain.

The most recent analyst rating on (HK:0135) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on KUNLUN ENERGY stock, see the HK:0135 Stock Forecast page.

Kunlun Energy’s Associate CCNG in Talks for Equity Sale

Kunlun Energy announced that China City Natural Gas Investment Group Co., Ltd. (CCNG), in which Kunlun Energy holds a 49% stake, is in negotiations with Shandong Shengli Co., Ltd. for the potential sale of equity interests in two subsidiaries. CCNG may sell a 51% stake in Nantong Oil & Gas Co., Ltd. and a 40% stake in Qinghai China Oil Ganhe Industrial Park Gas Co., Ltd. to Shengli Share. The transactions, which involve share issuance and cash consideration, are not yet finalized and may not materialize.

The most recent analyst rating on (HK:0135) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on KUNLUN ENERGY stock, see the HK:0135 Stock Forecast page.

Kunlun Energy Transfers Equity in Strategic Move to Focus on Urban Gas

Kunlun Energy Company Limited announced the transfer of equity interests in Xinjiang Xinjie Petroleum Co., Ltd. to PetroChina Xinjiang, a subsidiary of its controlling shareholder PetroChina. This transaction, valued at RMB13,503,500, is part of Kunlun Energy’s strategy to focus on its core activities, aiming to improve market share and operational efficiency. The disposal is classified as a connected transaction under Hong Kong’s Listing Rules, subject to reporting and announcement requirements but exempt from circular and independent shareholders’ approval.

The most recent analyst rating on (HK:0135) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on KUNLUN ENERGY stock, see the HK:0135 Stock Forecast page.