JPMorgan maintains a cautious view on Chinese gas utilities due to expected disappointing annual results and limited improvement in the 2026 outlook. The firm rates KUNLUN ENERGY as Overweight, citing an expected shareholder return of 6% and a potential increase in the dividend payout ratio. ENN ENERGY is also rated Overweight due to its current 33% A/H discount, with expectations that privatization could narrow this discount. Conversely, HK & CHINA GAS was downgraded from Overweight to Neutral, as its valuation appears reasonable following a share price increase.
