BofAS Lowers KUNLUN ENERGY Rating to Underperform, Prefers PETROCHINA; Anticipates Slower Growth in China's Natural Gas Demand

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Nov 12 2025

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00135+0.74%

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Should l Buy 00135?

Source: aastocks

China's Natural Gas Demand Forecast: BofA Securities predicts China's natural gas demand growth will slow to 2-3% annually from 2025-27, down from a 9% CAGR over the past decade, due to coal being more economical and weak industrial demand.
PETROCHINA Rating and Target Price: BofA maintains a Buy rating on PETROCHINA, raising its target price by 12% to HKD9.5, citing stable natural gas prices and reduced losses on imports as oil prices decline.
KUNLUN ENERGY Rating Downgrade: BofA downgraded KUNLUN ENERGY from Neutral to Underperform, as the company relies heavily on industrial customers, who may require price cuts to remain competitive.
KUNLUN ENERGY Target Price Adjustment: The target price for KUNLUN ENERGY was lowered by 16% to HKD7, reflecting the need to adjust pricing strategies amidst unchanged costs.

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Analyst Views on 00135

Wall Street analysts forecast 00135 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00135 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 8.110

Low

Averages

High

Current: 8.110

Low

Averages

High

JPMorgan

maintain

$1.12

2026-01-27

Reason

JPMorgan

Price Target

$1.12

AI Analysis

2026-01-27

maintain

Reason

The analyst rating from JPMorgan is influenced by several factors: 1. Positive Sentiment: There is a strong positive sentiment in the market driven by developments in commercial aerospace and space solar power, which has led to significant increases in the share prices of MINGYANG SMART ENERGY and GOLDWIND. 2. Focus on Strong Earnings Growth: JPMorgan recommends investors to focus on companies with strong earnings growth prospects, specifically highlighting ORIENT WIRES & CABLES, DAQO New Energy, and GCL TECH. 3. Surge in Energy Storage Capacity: The substantial year-over-year increase in China's installed capacity of energy storage systems (73%) is expected to benefit companies like SUNGROW POWER due to policy reforms and rising demand. 4. Cautious View on Gas Utilities: The broker maintains a cautious outlook on China's gas utilities sector, citing weak industrial gas volume growth, limited profit margin improvements, and a decline in new connections. KUNLUN ENERGY is noted as the top pick in this sector due to its active engagement in capital recovery. 5. Concerns about CHINA RES GAS: JPMorgan expresses caution regarding CHINA RES GAS due to slow progress in share buybacks and weak operating trends. Overall, the recommendations are based on market trends, company performance potential, and sector-specific challenges.

BofA Securities

maintain

2025-11-12

Reason

BofA Securities

Price Target

2025-11-12

maintain

Reason

The analyst rating for PETROCHINA was maintained as a Buy due to the relatively stable average selling price of natural gas and the narrowing losses on imported natural gas as oil prices decline. Additionally, the target price for PETROCHINA was raised by 12% to HKD9.5. In contrast, KUNLUN ENERGY was downgraded from Neutral to Underperform because industrial customers, who account for 75% of the company's retail natural gas sales, are likely to be more price-sensitive. With costs remaining almost unchanged, KUNLUN ENERGY will need to cut prices to maintain customer appeal, leading to a lowered target price of HKD7.

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About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

an image of <JPM Research> Positive Outlook for China's Photovoltaic Industry; Stock Picks Should Emphasize Earnings Growth Potential While Maintaining Caution on Gas Sector

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ENN Energy Privatization Delay: ENN Energy has extended the deadline for dispatching its privatization scheme document to no later than January 30, 2026, due to the need for more time to meet pre-conditions, which was anticipated by the market.
Impact on Share Prices: JPMorgan believes the delay in ENN Energy's privatization scheme may have a slight negative effect on its share price, while its H-shares are viewed as offering better risk-return compared to A-shares.
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Market Opportunities: JPMorgan suggests that investors consider market entry opportunities in KUNLUN Energy, which is projected to achieve over 5% sales growth in 2H25, alongside improvements in gas sales for other companies like China Resources Gas.