KUNLUN ENERGY COMPAN

135

End-of-day quote - 01/15
7.29HKD	+0.55%

Kunlun Energy Company Limited : Expect the comeback of a strong trend

	David Meurisse
	Contributor / Partner

Strategy published on : 01/14/2020 | 10:25

long trade

Stop-loss triggered

Entry price : 7.11HKD
Target : 7.49HKD
Stop-loss : 6.77HKD
Potential : 5.34%

The price of Kunlun Energy Company Limited shares is range-bound. This phase will end sooner or later when volatility comes back.
Investors have an opportunity to buy the stock and target the HKD 7.49.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.

Strengths

● The stock, which is currently worth 2019 to 0.58 times its sales, is clearly overvalued in comparison with peers.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● The company is one of the best yield companies with high dividend expectations.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

Weaknesses

● The company's earnings releases usually do not meet expectations.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

● The underlying tendency is negative on the weekly chart below the resistance at 7.67 HKD

11/19	Kunlun Energy Chairman, CEO Resign
09/11	Kunlun Energy : REVISED ANNUAL CAPS FOR THE CONTINUING CONNECTED...
08/31	Kunlun Energy : SUMMARY OF FINANCIAL STATEMENT OF PETROCHINA KUNLUN GAS CO.,...
08/27	Kunlun Energy Company Limited : half-yearly earnings release
08/25	Kunlun Energy : ANNOUNCEMENT OF RESULTS