PetroChina Co Ltd Class H
00857: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$6.20 | Mfls | Rnygsnls |
PetroChina: Takeaways From Reverse Roadshow
We attended PetroChina’s reverse roadshow to visit Daqing oilfield and Jilin oilfield and came back with a few takeaways. There is no change in our view, and we keep our fair value estimate at HKD 6.80 per H-share (CNY 6.20 per A-share). We think the shares are currently overvalued. We see the recent OPEC+ production cut extensions as a sign of weakness, not strength. Hence, we believe the West Texas Intermediate oil price could ease to USD 65-USD 70 a barrel in 2024 and this is negative to the revenue outlook for oil companies.