Jack Lu, CFA, an analyst from Morgan Stanley, maintained the Buy rating on PetroChina Company (PCCYF – Research Report). The associated price target is HK$8.75.
Jack Lu, CFA has given his Buy rating due to a combination of factors influencing PetroChina Company’s financial outlook. The resilience of China’s industrial gas market prices, which have remained high and are expected to stay steady throughout 2025, plays a significant role. Additionally, the anticipated sharp decline in import gas costs starting in the second quarter of 2025, driven by oil price corrections, is expected to contribute to a substantial expansion in gas margins for PetroChina.
Furthermore, the pricing reforms initiated in 2022 have led to an increase in industrial natural gas market prices, which, when combined with the expected reduction in import costs, suggest a favorable environment for margin expansion. This positive outlook is further supported by PetroChina’s structural gas yield, projected to be between 6.5% and 7.5% in 2025 and 2026, indicating a promising return for investors. These factors collectively underpin Jack Lu’s optimistic Buy rating for PetroChina.
In another report released on April 4, Citi also maintained a Buy rating on the stock with a HK$8.20 price target.