Elevator Pitch
Hong Kong-listed China integrated energy company Kunlun Energy Company Limited (KUNUF) [135:HK] currently trades at 7.6 times consensus forward FY2020 P/E, representing a discount to its historical five-year average forward P/E of approximately 10 times and peers which are all valued by the market at above 10 times forward P/E.
Kunlun Energy's valuation discount relative to history and peers is largely attributable to the overhang regarding a potential injection of its Shaanxi-Beijing pipeline and the three LNG terminals into the national pipeline company.
The stock offers a consensus forward FY2020 dividend yield of