---
title: "Morgan Stanley: Maintains caution on mainland gas stocks, with KUNLUN ENERGY as the top pick and target price raised to HKD 9"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/276992144.md"
description: "JP Morgan holds a cautious attitude towards China Gas Holdings, expecting the full-year performance to be disappointing with low industry growth. The preferred choice is KUNLUN ENERGY, with the target price raised from HKD 7.8 to HKD 9, rated as \"Overweight.\" ENN ENERGY also received an \"Overweight\" rating, with the target price raised to HKD 72.5. Hong Kong and China Gas's rating has been downgraded to \"Neutral,\" with the target price raised to HKD 7.6"
datetime: "2026-02-26T06:27:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276992144.md)
  - [en](https://longbridge.com/en/news/276992144.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276992144.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/276992144.md) | [繁體中文](https://longbridge.com/zh-HK/news/276992144.md)


# Morgan Stanley: Maintains caution on mainland gas stocks, with KUNLUN ENERGY as the top pick and target price raised to HKD 9

According to the Zhitong Finance APP, JP Morgan has released a research report maintaining a cautious view on China's gas utilities, as it expects the full-year performance of the covered companies to be disappointing, with limited room for improvement in this year's outlook. The bank anticipates that the industry will maintain low growth this year, based on weak gas sales growth, a continued decline in new residential connections, and stable gas profit margins.

The bank's industry preference is KUNLUN ENERGY (00135), expecting a shareholder return rate of 6% (including dividends and buybacks), with an opportunity to raise the dividend payout ratio and announce a new dividend plan in March; it has given an "Overweight" rating, raising the target price from the previous HKD 7.8 to HKD 9.

Additionally, ENN ENERGY (02688) has also received an "Overweight" rating, as its A-shares and H-shares are currently trading at a discount of 33%; if privatization makes more progress, the discount is expected to narrow. The target price for ENN ENERGY's H-shares has been raised from the previous HKD 66.5 to HKD 72.5, and the target price for ENN's A-shares (600803.SH) has been raised from RMB 17 to RMB 18.5, with a "Neutral" rating.

At the same time, the bank has downgraded the rating of Hong Kong and China Gas (00003) from "Overweight" to "Neutral," raising the target price from the previous HKD 7.25 to HKD 7.6, as its stock price has risen since the second half of last year, making its current valuation relatively reasonable

### 相关股票

- [ENN ENERGY (02688.HK)](https://longbridge.com/zh-CN/quote/02688.HK.md)
- [KUNLUN ENERGY (00135.HK)](https://longbridge.com/zh-CN/quote/00135.HK.md)

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