PetroChina Company (0857) AI Stock Analysis

• Market Cap: $2.12T
• Dividend Yield: 6.32%
• Average Volume (3M): 84.49M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.62
• Revenue Growth: -6.92%
• EPS Growth: -2.57%
• Country: HK
• Employees: 370,799
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.26
• Shares Outstanding: 21,098,900,000
• 10 Day Avg. Volume: 81,346,364
• 30 Day Avg. Volume: 84,493,442
• PEG Ratio: 2.81
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 10.11
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 6.70
• 1Y Price Target: $10.00
• Price Target Upside: 9.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$10.00 ▲(9.89% Upside)

The score is driven primarily by steady financial performance (solid margins, improving leverage, ~10% ROE) and attractive valuation (low P/E and high dividend yield). These positives are partially offset by weaker technical momentum (below key moving averages with negative MACD) and moderate/volatile cash-flow conversion.

Positive Factors

Integrated business model

PetroChina's vertical integration across exploration, production, refining, pipelines and petrochemicals provides durable diversification of cash flows and margins. This structure lets management shift volumes and capital between segments to smooth cycles and capture value across the hydrocarbon chain over months to years.

Conservative leverage

A low debt-to-equity ratio and rising equity base support financial resilience through commodity swings. Conservative leverage reduces refinancing risk, preserves capacity for strategic capex or maintenance of dividends, and gives the company flexibility to invest in long‑lived upstream or midstream projects without stressing liquidity.

Stable profitability

Consistent gross and net margins with mid‑teens asset returns underpin sustained cash generation potential. Around 10% ROE indicates the business earns reasonable returns on capital, supporting dividend capacity and steady reinvestment, assuming commodity markets remain within typical cycle ranges.

Negative Factors

Moderate, volatile cash conversion

Relatively low FCF conversion and volatile free cash flow reduce the firm's ability to consistently fund capital expenditures and distributions without relying on commodity‑driven windfalls. Persistent cash timing or working capital swings can constrain strategic investments and increase reliance on external financing in downturns.

Commodity and cyclical exposure

Significant upstream exposure ties earnings and cash flow to oil and gas price cycles and demand trends. This structural sensitivity makes multi‑month forecasting and capital allocation challenging, raising the probability of earnings volatility and forcing conservative balance‑sheet or dividend policies during prolonged price weakness.

Weak recent revenue trend

Negative recent revenue growth highlights demand, volume or pricing pressure that could limit margin expansion and reinvestment returns. Sluggish top‑line trends constrain operating leverage, making it harder to improve returns on capital without structural improvements in volumes, realized prices, or downstream margins.

PetroChina Company Business Overview & Revenue Model

Company Description

PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline segments. The Exploration and Production segment engages in the exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment refines crude oil and petroleum products; and produces and markets primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment is involved in marketing of refined products and trading business. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and sale of natural gas. As of December 31, 2021, the company had a total length of 26,076 km, including 17,329 km of natural gas pipelines, 7,340 km of crude oil pipelines, and 1,407 km of refined product pipelines. The company is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; and production and sales of basic and derivative chemical, and other chemical products. The company was founded in 1999 and is headquartered in Beijing, the People's Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.

How the Company Makes Money

PetroChina generates revenue through multiple streams primarily driven by its upstream, midstream, and downstream operations. In the upstream sector, the company earns money from crude oil and natural gas extraction, selling these commodities in both domestic and international markets. The midstream segment contributes to revenue through the transportation and storage of oil and gas, often via pipelines, with fees charged for these services. The downstream sector, which includes refining crude oil into various petroleum products and marketing these products, represents a significant portion of the company's earnings. Additionally, PetroChina engages in petrochemical production, which provides further revenue. The company benefits from strategic partnerships, joint ventures, and collaborations with other energy firms, enhancing its operational capabilities and market reach. Market prices for oil and gas, along with government policies and regulations in China, significantly impact its earnings.

PetroChina Company Financial Statement Overview

Summary

Fundamentals look steady: solid profitability (TTM gross margin ~28.1%, net margin ~5.6%) and modest TTM revenue growth (~2.9%), supported by conservative leverage (~0.24x debt-to-equity) and ~10% ROE. The main drag is cash-flow quality/volatility, with only moderate conversion (FCF ~36% of net income; OCF ~74% of net income) and sharp negative FCF growth versus the prior period.

Income Statement

Profitability is solid for an integrated oil & gas major: TTM (Trailing-Twelve-Months) gross margin is ~28.1% and net margin is ~5.6%, broadly consistent with 2023–2024. Revenue has stabilized after two down years (2023–2024), with TTM (Trailing-Twelve-Months) showing modest growth (~2.9%). A key watch-out is that earnings power appears somewhat cyclical, with margins not meaningfully expanding versus recent years.

Balance Sheet

Leverage looks conservative: debt is ~0.24x equity in TTM (Trailing-Twelve-Months), improved from higher levels in 2020–2022. Equity has grown over time (from ~1.22T in 2020 to ~1.70T in TTM), supporting balance-sheet resilience. Returns on equity are steady around ~10% in TTM (Trailing-Twelve-Months), though not accelerating—suggesting a stable but not high-return profile.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow of ~359B and free cash flow of ~128B. However, cash conversion is only moderate: free cash flow is ~36% of net income in TTM (Trailing-Twelve-Months), and operating cash flow covers only ~74% of net income, implying working-capital or other cash timing headwinds. Free cash flow also appears volatile, with a very sharp negative growth rate in TTM (Trailing-Twelve-Months) versus the prior period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85T	2.94T	3.01T	3.24T	2.61T	1.93T
Gross Profit	610.47B	662.76B	710.43B	788.05B	613.06B	452.16B
EBITDA	300.98B	491.82B	484.59B	446.98B	379.25B	277.60B
Net Income	158.42B	164.68B	161.14B	148.74B	92.16B	33.48B
Balance Sheet
Total Assets	2.85T	2.75T	2.75T	2.67T	2.50T	2.49T
Cash, Cash Equivalents and Short-Term Investments	289.17B	219.06B	277.28B	233.30B	167.51B	145.95B
Total Debt	358.91B	355.47B	413.19B	464.51B	470.30B	498.14B
Total Liabilities	1.09T	1.04T	1.12T	1.14T	1.09T	1.12T
Stockholders Equity	1.56T	1.52T	1.45T	1.37T	1.26T	1.22T
Cash Flow
Free Cash Flow	122.76B	103.88B	174.08B	148.53B	75.91B	61.85B
Operating Cash Flow	347.63B	406.53B	456.60B	393.77B	341.47B	318.57B
Investing Cash Flow	-298.03B	-307.35B	-255.79B	-232.97B	-213.03B	-181.99B
Financing Cash Flow	-107.92B	-178.88B	-146.57B	-113.71B	-107.97B	-99.40B

PetroChina Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0857, the sentiment is Positive. The current price of 9.1 is above the 20-day moving average (MA) of 8.64, above the 50-day MA of 8.49, and above the 200-day MA of 7.40, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 55.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0857.

PetroChina Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1088	78 Outperform	$932.71B	14.82	―	8.97%	-13.87%	-15.41%
0857	70 Outperform	$2.12T	9.79	10.16%	6.32%	-6.92%	-2.57%
0386	68 Neutral	$840.47B	17.04	―	5.52%	-10.02%	-27.89%
0883	68 Neutral	€1.17T	8.17	17.50%	6.76%	-9.81%	-8.84%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1898	64 Neutral	HK$193.78B	9.84	10.99%	4.59%	-3.42%	-18.73%

PetroChina Company Corporate Events

CNPC Slightly Lifts Controlling Stake in PetroChina Through A and H Share Purchases

PetroChina has announced that its controlling shareholder, China National Petroleum Corporation, has increased its stake in the company by purchasing 30 million A shares on the Shanghai Stock Exchange, while CNPC’s wholly owned subsidiary Fairy King Investments Ltd. acquired an additional 11.896 million H shares in Hong Kong. Following these transactions, CNPC’s aggregate holding in PetroChina has risen slightly from about 82.33% to approximately 82.35% of the company’s issued share capital, and the group has signaled that it will continue to raise its shareholding under an existing increase plan, with PetroChina committing to ongoing disclosure as the plan progresses.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Reshapes Key Board Committees in Governance Realignment

PetroChina Company Limited has announced changes to the composition of several key board committees as part of its internal work arrangements, signaling an adjustment in its governance structure. Zhou Xinhuai has been appointed chairman of the Investment and Development Committee, with Ren Lixin, Xie Jun and independent non-executive director Andrew Y. Yan as members; Liu Xiaolei will chair the Audit and Risk Management Committee, joined by Zhou Song and independent non-executive director Simon X. Jiang; and Ren Lixin will chair the Sustainable Development Committee, with Zhang Daowei, Song Dayong and independent non-executive director Zhang Yuxin as members, while all other board committee roles remain unchanged. These shifts highlight a refreshed allocation of responsibilities among executive and independent non-executive directors, potentially sharpening oversight of investment strategy, risk management and sustainability issues at a time when governance and environmental performance are under growing scrutiny in the global energy industry.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Details Board Composition and Governance Committee Structure

PetroChina Company Limited has announced the current composition of its board of directors, led by Chairman Dai Houliang and Vice Chairman and Non-Executive Director Zhou Xinhuai, and comprising non-executive, executive and independent non-executive directors. The board has formed five specialized committees—Nomination, Audit and Risk Management, Investment and Development, Examination and Remuneration, and Sustainable Development—with clearly designated chairs and members, a move that underscores the company’s emphasis on structured corporate governance, risk oversight and long-term sustainability, which are important for investors and other stakeholders monitoring the company’s governance standards and strategic direction.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Renews Currency Derivatives Framework with CNPC Finance for 2026

PetroChina Company Limited has entered into a 2026 Derivatives Framework Agreement with CNPC Finance, under which CNPC Finance will provide currency derivatives services, including various foreign exchange and interest rate products, to the group throughout 2026. As CNPC is PetroChina’s controlling shareholder and CNPC Finance is its subsidiary, the arrangement constitutes a continuing connected transaction under Hong Kong listing rules, triggering reporting, announcement and annual review requirements but exempting the company from issuing a circular or seeking independent shareholders’ approval. The agreement sets out pricing principles aligned with government benchmarks and prevailing market terms, with PetroChina required to benchmark CNPC Finance’s fees and terms against those of comparable independent financial institutions and to proceed only when conditions are equal to or better than market, thereby aiming to ensure arm’s‑length dealing and protect minority shareholders’ interests; historical usage in 2025 remained well below the approved annual cap, reflecting more subdued demand for swap transactions amid narrower interest rate spreads.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Names Non-Executive Director Zhou Xinhuai as Vice Chairman

PetroChina Company Limited has appointed non-executive director Zhou Xinhuai as Vice Chairman of the company with immediate effect, strengthening the senior leadership structure at the state-backed energy group. The board-level reshuffle, which confirms Zhou’s elevation alongside existing chairman Dai Houliang and a broad mix of executive, non-executive and independent non-executive directors, underscores ongoing governance adjustments at one of China’s largest oil and gas producers, a move that may influence the company’s strategic direction and oversight as it navigates a changing global energy landscape.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Shareholders Approve Board Appointments and Governance Overhaul at 2025 EGM

PetroChina Company Limited announced that its first extraordinary general meeting of 2025, held in Beijing on 18 December, was duly convened and passed all proposed resolutions by poll, with a high level of shareholder participation representing over 86% of the company’s total voting shares. Shareholders approved the election of Zhou Xinhuai and Zhou Song as directors and Song Dayong as an executive director, as well as significant amendments to the company’s articles of association and internal procedural rules, including the abolition of the supervisory committee. These governance changes signal a restructuring of PetroChina’s oversight framework and board composition, which may affect its corporate decision-making processes and align its governance structure more closely with evolving regulatory and market expectations for large state-linked energy groups.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Announces Board Line-Up and Committee Assignments

PetroChina Company Limited has announced the current composition of its board of directors, led by chairman Dai Houliang, detailing non-executive, executive and independent non-executive directors. The company also disclosed the membership structure of its five key board committees—Nomination, Audit, Investment and Development, Examination and Remuneration, and Sustainable Development—clarifying which directors serve as chair or members, a move that enhances transparency in corporate governance and provides investors with clearer insight into oversight responsibilities at the board level.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Expands Gas Storage Capacity with Strategic Acquisition

PetroChina Company Limited has announced the acquisition of entire equity interests in several target companies, which will become indirectly non-wholly owned subsidiaries. This acquisition involves the establishment of three new joint venture companies, which will enhance PetroChina’s gas storage and peak-shaving capabilities, adding 10.97 billion cubic meters of working gas storage capacity. This strategic move is expected to ensure stable operations and high-quality development of PetroChina’s natural gas industrial chain, improving adjustment efficiency and maximizing the overall benefits of the natural gas industry.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Proposes Appointment of New Director Zhou Song

PetroChina Company Limited has announced the proposed election and appointment of Mr. Zhou Song as a Director, pending shareholder approval. Mr. Zhou, who holds significant experience in finance and management within major Chinese corporations, is expected to bring valuable expertise to the board, potentially influencing the company’s strategic direction and financial oversight.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.

PetroChina Announces Key Governance Changes at Upcoming EGM

PetroChina Company Limited has announced a supplemental notice for its 2025 first extraordinary general meeting (EGM) scheduled for December 18, 2025. The meeting will address the election of new directors and amendments to the company’s articles of association, including the abolition of the supervisory committee. These changes are aimed at enhancing corporate governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:0857) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on PetroChina Company stock, see the HK:0857 Stock Forecast page.