The analyst rating is based on KUNLUN ENERGY's stable core profit expectations for 2026 despite a 7% decline in core profit last year, primarily due to weak natural gas sales. The company plans to increase its dividend payout ratio to 51% in 2025 and maintain it above 50% through 2028, which is seen as a positive for investors. However, the earnings forecast for 2026 to 2027 has been revised down by 5% to 8%, leading to a lowered target price from HKD9.6 to HKD8.87, while still maintaining a 'Buy' rating.
