Kunlun Energy Company Limited (0135.HK) stock analysis

In our weekly check, Kunlun Energy Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 5.

About Kunlun Energy Company Limited

Kunlun Energy Company Limited is an Energy company (Oil & Gas Refining & Marketing) based in Hong Kong, listed on HKSE as 0135.HK.

What our checks show for 0135.HK

Red flags

• The net margin fell by 13.9 points over 5 years, to 2.8%: the company keeps less of each sale as profit.
• The gross margin fell by 9.2 points, to 7.1%: costs are rising faster than prices.
• The net margin is only 2.8%: little room if costs rise.
• The dividend takes 342% of profit: little cushion if profit falls.
• The stock has fallen as much as 82% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 2.3 times: a weak year could make the payments hard.
• Analysts expect the net margin to shrink by 0.1 points from today's 2.8%.
• Revenue grew only 3.2% a year over the last 3 years.
• Net profit fell 0.1% a year over the last 3 years.
• Free cash flow is only 3.9% of revenue.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 8.5%.

Strengths

• Debt is low: 0.31x equity.
• Operating cash flow is 2.52x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 10.5% a year over the next years.
• The price is 10.2 times earnings (P/E), reasonable for its growth.
• Beta 0.55: the stock usually moves less than the market.
• Actively traded: about 9.6 million shares a day.

Similar companies

PSX · VLO · MPC · NESTE.HE · DINO · QFLS.QA

Questions

What grade does Kunlun Energy Company Limited (0135.HK) have?

In our weekly check, Kunlun Energy Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0135.HK stock?

This week's biggest flags for Kunlun Energy Company Limited: Margins falling, Gross margin falling, Thin margins. In total 12 of 25 checks show a warning or a red flag.

What does Kunlun Energy Company Limited do?

Kunlun Energy Company Limited is an Energy company (Oil & Gas Refining & Marketing) based in Hong Kong, listed on HKSE as 0135.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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