Kunlun Energy Has Competitive Edge And Re-Rating Catalysts

The Value Pendulum
Investing Group Leader
(8min)

Summary

  • I maintain a Buy rating on Kunlun Energy, considering its edge over rivals and the presence of re-rating triggers.
  • KUNUF's strong parentage and Western China's geographic concentration puts it in a better competitive position than its peers.
  • Market reforms are supportive of improved margin stability and higher cash distributions for KUNUF.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
On/off switches

shingopix

I'm still assigning a Buy to Kunlun Energy Company Limited (OTC:KLYCY) (OTCPK:KUNUF) (0135.HK).

KUNUF's divestiture of non-core midstream gas-related properties was the subject of my previous August 3, 2020 write-up.

KUNUF possesses unique characteristics that make it a good play

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This article was written by

The Value Pendulum
12.79K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KUNLUN ENERGY (0135.HK) either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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