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How Kunlun Energy Company Limited (HKG:135) Could Add Value To Your Portfolio

Simply Wall St

Kunlun Energy Company Limited (HKG:135) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 135, it is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Kunlun Energy here.

Good value average dividend payer

135's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 135's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, 135's share price is trading below the group's average. This supports the theory that 135 is potentially underpriced.

SEHK:135 Price Estimation Relative to Market, September 10th 2019

135 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

SEHK:135 Historical Dividend Yield, September 10th 2019

Next Steps:

For Kunlun Energy, there are three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 135’s future growth? Take a look at our free research report of analyst consensus for 135’s outlook.
  2. Historical Performance: What has 135's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 135? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.