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<Research>JPM Maintains Cautious Stance on CN Gas Utilities, Lifts Top Pick KUNLUN ENERGY TP to $9
Recommend 4 Positive 8 Negative 3 |
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JPMorgan published a research report maintaining a cautious view on Chinese gas utilities, as the annual results of the companies it covers are expected to be disappointing, with limited room for improvement in 2026 outlook. The broker's sector top pick is KUNLUN ENERGY (00135.HK), with an expected shareholder return of 6% (including dividends and buybacks), and a potential increase in the dividend payout ratio along with a new dividend plan announcement in March. Therefore, JPMorgan rated KUNLUN ENERGY at Overweight, and lifted its target price from $7.8 to $9. Moreover, ENN ENERGY (02688.HK) is also rated at Overweight due to its current 33% A/H discount. If privatization progresses further, the discount is estimated to narrow. JPMorgan elevated its target prices for ENN ENERGY's H-/ A-shares from $66.5/ RMB17 to $72.5/ RMB18.5, with A-share rating at Neutral. Meanwhile, the broker downgraded HK & CHINA GAS (00003.HK) from Overweight to Neutral, and added its target price from $7.25 to $7.6, as its valuation is relatively reasonable after the share price hike since 2H25. AASTOCKS Financial News Website: www.aastocks.com |
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