Morgan Stanley: PetroChina Q3 core EPS beats expectations, maintains Overweight rating and HK$13.25 target price

Stock News
10/29

According to a research report from Morgan Stanley, the bank maintains its Overweight rating on PetroChina (00857) with a target price of HK$13.25.

Supported by higher year-on-year energy prices, the company delivered solid third-quarter results, with earnings per share rising 23% year-on-year and declining 7% quarter-on-quarter, in line with the bank's expectations. Core earnings per share came in at RMB 0.29, 3% above the bank's forecast.

The bank noted that PetroChina's refining business EBIT grew 92% quarter-on-quarter, mainly driven by higher exports and a recovery in the domestic market.

The natural gas business EBIT rose 76% quarter-on-quarter, supported by higher sales volumes and average prices, outperforming the bank's expectations, though it was still down 27% year-on-year.

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