SEHK:135

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Kunlun Energy Company Limited, an investment holding company, engages in the exploration, development, production, and sale of crude oil and natural gas. More Details


Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

How has Kunlun Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 135 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

135

-0.6%

HK Gas Utilities

1.5%

HK Market


1 Year Return

-22.3%

135

-19.6%

HK Gas Utilities

1.4%

HK Market

Return vs Industry: 135 underperformed the Hong Kong Gas Utilities industry which returned -19.5% over the past year.

Return vs Market: 135 underperformed the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

135IndustryMarket
7 Day3.5%-0.6%1.5%
30 Day-15.6%-3.3%-0.7%
90 Day5.1%-10.0%3.6%
1 Year-17.5%-22.3%-17.4%-19.6%5.4%1.4%
3 Year-15.5%-26.0%7.3%0.3%-4.3%-14.6%
5 Year13.0%-3.2%48.1%32.8%24.7%3.7%

Price Volatility Vs. Market

How volatile is Kunlun Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kunlun Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 135 (HK$5.37) is trading below our estimate of fair value (HK$19.36)

Significantly Below Fair Value: 135 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 135 is good value based on its PE Ratio (8.5x) compared to the HK Gas Utilities industry average (12.4x).

PE vs Market: 135 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 135 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 135 is good value based on its PB Ratio (0.8x) compared to the HK Gas Utilities industry average (1.2x).


Next Steps

Future Growth

How is Kunlun Energy forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 135's forecast earnings growth (13.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 135's earnings (13.5% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

High Growth Earnings: 135's earnings are forecast to grow, but not significantly.

Revenue vs Market: 135's revenue (10.9% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 135's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 135's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Kunlun Energy performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 135 has high quality earnings.

Growing Profit Margin: 135's current net profit margins (4.3%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: 135's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: 135's earnings growth over the past year (1.7%) is below its 5-year average (25.6% per year).

Earnings vs Industry: 135 earnings growth over the past year (1.7%) exceeded the Gas Utilities industry -0.2%.


Return on Equity

High ROE: 135's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Kunlun Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 135's short term assets (CN¥32.5B) do not cover its short term liabilities (CN¥41.0B).

Long Term Liabilities: 135's short term assets (CN¥32.5B) exceed its long term liabilities (CN¥31.1B).


Debt to Equity History and Analysis

Debt Level: 135's debt to equity ratio (44.4%) is considered high.

Reducing Debt: 135's debt to equity ratio has increased from 40.4% to 44.4% over the past 5 years.

Debt Coverage: 135's debt is well covered by operating cash flow (44.2%).

Interest Coverage: 135's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Kunlun Energy current dividend yield, its reliability and sustainability?

5.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 135's dividend (5.61%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 135's dividend (5.61%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.91%).


Stability and Growth of Payments

Stable Dividend: 135's dividend payments have been volatile in the past 10 years.

Growing Dividend: 135's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), 135's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 135's dividends in 3 years are forecast to be well covered by earnings (35.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Zhao Yongqi (59 yo)

6.75yrs

Tenure

CN¥962,000

Compensation

Mr. Zhao Yongqi has been the Chief Executive Officer of Kunlun Energy Company Limited since December 5, 2013 and had been its General Manager since February 2016. Mr. Yongqi has been the President of Kunlu ...


CEO Compensation Analysis

Compensation vs Market: Zhao's total compensation ($USD142.23K) is below average for companies of similar size in the Hong Kong market ($USD574.53K).

Compensation vs Earnings: Zhao's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zhao Yongqi
President6.75yrsCN¥962.00kno data
Xiao Ling
Executive Chairman2.67yrsno datano data
Yong Miao
CFO & Executive Director2.67yrsno datano data
Yuxiao Fa
Senior Vice President9yrsno datano data
Wenxu Zhong
Senior Vice President9yrsno datano data
Xia Yu
Assistant Chief Executive Officer9yrsno datano data
Yuanhong Zhou
Executive Director2.67yrsno datano data
Cheng Cheng
VP & Company Secretary4.17yrsCN¥1.03mno data

7.9yrs

Average Tenure

56yo

Average Age

Experienced Management: 135's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhao Yongqi
President6.75yrsCN¥962.00kno data
Xiao Ling
Executive Chairman2.67yrsno datano data
Yong Miao
CFO & Executive Director2.67yrsno datano data
Yuanhong Zhou
Executive Director2.67yrsno datano data
Patrick Sun
Independent Non-Executive Director4.58yrsCN¥220.00kno data
Xiaofeng Liu
Independent Non-Executive Director16.42yrsCN¥220.00kno data
Yok Sing Tsang
Independent Non-Executive Director1.08yrsCN¥77.00kno data

2.7yrs

Average Tenure

57yo

Average Age

Experienced Board: 135's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kunlun Energy Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kunlun Energy Company Limited
  • Ticker: 135
  • Exchange: SEHK
  • Founded:
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$46.498b
  • Shares outstanding: 8.66b
  • Website: https://www.kunlun.com.hk

Number of Employees


Location

  • Kunlun Energy Company Limited
  • 118 Connaught Road West
  • 39th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KUNU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CTJ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
135SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
135SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
135SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
KLYC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2009

Biography

Kunlun Energy Company Limited, an investment holding company, engages in the exploration, development, production, and sale of crude oil and natural gas. It operates through four segments: Exploration and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 19:32
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.