Investment Rating - The report assigns a rating of "Buy" for the company [5] Core Insights - The company achieved total operating revenue of 286,446.9 million yuan in 2025, a year-on-year decrease of 2.50% - The net profit attributable to shareholders was 15,730.2 million yuan, down 4.48% year-on-year - The fourth quarter of 2025 saw revenue of 69,521.3 million yuan, an increase of 2.19% year-on-year but a decrease of 3.33% quarter-on-quarter - The net profit for Q4 2025 was 3,102.3 million yuan, down 2.72% year-on-year and down 26.64% quarter-on-quarter [2][14] Financial Summary - Total operating revenue for 2025 was 286,446.9 million yuan, with a projected increase to 309,075.7 million yuan in 2026, reflecting a growth of 7.9% - Net profit attributable to shareholders is expected to rise to 190,343 million yuan in 2026, a growth of 21.0% from 2025 - Earnings per share (EPS) is projected to be 1.04 yuan in 2026, up from 0.86 yuan in 2025 - The return on equity (ROE) is forecasted to be 11.3% in 2026, compared to 9.9% in 2025 [3][12] Business Segments - Oil and Gas and New Energy: In Q4 2025, revenue from this segment was 202,418 million yuan, down 28.83% year-on-year, with operating profit dropping 68.36% year-on-year due to a significant decline in Brent crude oil prices - Natural Gas Sales: Revenue in Q4 2025 was 172,165 million yuan, up 18.45% year-on-year, with operating profit increasing by 29.88% due to rising domestic natural gas sales and effective cost control [18][25] - Refining and Chemical: This segment reported revenue of 25,199.1 million yuan in Q4 2025, down 31.25% year-on-year, but operating profit improved by 55.60% due to lower raw material costs and product structure optimization [22] Market Data - The target price for the company's stock is set at 13.79 yuan, based on a price-to-book (PB) ratio of 1.5 times the projected book value per share (BPS) of 9.19 yuan in 2026 [5][29] - The company's market capitalization is approximately 227.7 billion yuan, with a total share capital of 18.3 billion shares [6]

Core Viewpoint - PetroChina is operating normally despite the ongoing conflict in the Middle East, which has impacted global oil supplies and prices. The company relies on the Strait of Hormuz for about 10% of its crude oil and natural gas supplies [1][2]. Group 1: Operational Stability - Approximately 90% of PetroChina's crude processing and natural gas sales come from domestic production, pipeline imports, equity shares in non-Middle Eastern projects, and long-term contracts outside the Middle East [3]. - The chairman stated that this diversified supply chain allows PetroChina to maintain stable and relatively high operating rates for an extended period [3]. Group 2: Impact of Middle Eastern Conflict - The ongoing war in Iran and the broader conflict in the Middle East have disrupted oil supply routes, leading to increased oil prices and forcing refiners and petrochemical producers in Asia to reduce output [2]. - Although PetroChina's investments in the Middle East have been affected, the company has contingency plans in place to secure supplies through trading activities [4].

Financial Performance - PetroChina reported a net profit attributable to its owners of 157.32 billion yuan ($22.75 billion) for 2025, a decrease of approximately 4.47% compared to 164.68 billion yuan ($23.82 billion) in 2024 [1] - The company's revenue for 2025 was 2,864.47 billion yuan, reflecting a decline of about 2.5% from 2,937.9 billion yuan in 2024 [1] - Free cash flows increased significantly by 15.18%, reaching 120.19 billion yuan in 2025, up from 104.35 billion yuan in 2024 [1] Production and Operations - PetroChina's oil and gas production reached 1,841.9 million barrels of oil equivalent in 2025, marking a 2.5% increase year-on-year [2] - The company processed 1.38 billion barrels of crude oil and produced 117 million tonnes of refined products in the refining and chemicals sector [2] - The output of chemical commodity products increased by 2.7% to 40.03 million tonnes [3] Sales and Market Performance - In marketing and sales, PetroChina achieved sales volumes of 160.81 million tonnes of gasoline, kerosene, and diesel, reflecting a 1.1% increase from the previous year [3] - Natural gas sales rose by 7%, reaching 314.71 billion cubic meters [3] Strategic Initiatives - In 2026, PetroChina will implement the "15th Five-Year Plan," focusing on becoming a leading integrated energy and chemical company [4] - The company aims to adapt to global energy transition and market changes through strategies in innovation, resources, market expansion, internationalization, and green development [4] - PetroChina plans to enhance market analysis, optimize production, and improve cost management to boost the efficiency of its oil and gas operations [4] Investment in Innovation - Technological innovation is a key focus for PetroChina, with an investment of 7.25 billion yuan in research and development, representing 1% of its revenue [3] - The company intends to develop new productive forces and accelerate growth in emerging sectors like new energies and materials [5]

Core Viewpoint - The financial performance of China's three major oil companies, known as "Three Barrels of Oil," has declined in 2025 due to falling international oil prices, but future prospects remain optimistic as analysts adjust target prices upward for these companies [3][4][6]. Group 1: Financial Performance - In 2025, China National Petroleum Corporation (CNPC) reported revenue of 2.86 trillion yuan, a decrease of 2.5% year-on-year, and a net profit attributable to shareholders of 157.3 billion yuan, down 4.5% [3]. - China Petroleum & Chemical Corporation (Sinopec) achieved revenue of 2.783583 trillion yuan, a decline of 9.46%, and a net profit of 31.809 billion yuan, down 36.78% [4]. - China National Offshore Oil Corporation (CNOOC) reported revenue of 398.22 billion yuan, a decrease of 5.3%, and a net profit of 122.082 billion yuan, down 11.5% [4]. Group 2: Operational Highlights - CNPC's oil and gas equivalent production reached 1.8419 billion barrels, an increase of 2.5%, while renewable energy generation rose to 7.93 billion kWh, up 68.0% [3]. - CNOOC's management indicated that despite a 14.6% drop in Brent oil prices, their net profit decline was less severe, showcasing strong operational performance [5]. - Sinopec's management noted challenges in refining and chemical operations but highlighted stable upstream business performance and sufficient inventory to support operations [5]. Group 3: Market Outlook - Analysts from UBS and Goldman Sachs have raised their profit forecasts for the three companies for 2026, with increases of 13%, 16%, and 0.4% for CNPC, CNOOC, and Sinopec, respectively [6]. - Following the rise in oil prices due to geopolitical tensions, the stock prices of the three companies have reached new highs, with CNPC and Sinopec hitting 13.69 yuan and 8.11 yuan per share, respectively, and CNOOC surpassing 40 yuan per share [5].

ANNUAL RESULTS PRESENTATION M A R C H 3 0 , 2 0 2 6 DISCLAIMER This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as "believe", "expect", "anticipate", "estimate", "plan", "project", "target", "may", "will" or other similar words that express an indication of actions or results of actions that may or are expected to occur in the future. You should not place undue reliance on these ...

Investment Rating - The report maintains a positive outlook on the oil and petrochemical industry, recommending key companies such as China National Offshore Oil Corporation (CNOOC), China Petroleum, China Petrochemical, and Intercontinental Oil and Gas [3][6][7]. Core Insights - The blockage of the Strait of Hormuz has led to a significant restructuring of the global oil market, with Brent crude prices exceeding $112 per barrel, marking a monthly increase of over 55%, the largest in recent years [6][7]. - The average daily oil throughput in the Strait dropped from 14.95 million barrels per day to 1.74 million barrels per day, a decline of 88.4%, with tanker traffic plummeting by 97.5% [10][11]. - Major oil-producing countries in the Persian Gulf have been forced to reduce production by a total of 9.26 million barrels per day, a decrease of 38%, which offsets OPEC+ plans for increased production [12][13]. - Refinery operating rates in major Asian oil-consuming countries have decreased by 8-15 percentage points, leading to a reduction in crude oil processing demand by approximately 3-4 million barrels per day [14][15]. Summary by Sections Upstream Sector - Brent crude futures closed at $112.57 per barrel, with a week-on-week increase of 0.34%, while WTI futures rose by 1.44% to $99.64 per barrel [20]. - The number of active drilling rigs in the U.S. decreased to 543, down by 9 rigs week-on-week and 49 rigs year-on-year [33][34]. Refining Sector - The comprehensive price spread for major refined products in Singapore increased to $73.70 per barrel, up by $3.40 from the previous week [52]. - The price spread for naphtha and ethylene has also seen significant increases, indicating improved refining margins [6][50]. Polyester Sector - PTA profitability has increased, while the profitability of polyester filament yarn has decreased, indicating mixed performance within the polyester supply chain [6][7]. Investment Recommendations - The report suggests that oil prices have upward elasticity, with companies like CNOOC, China Petroleum, and China Petrochemical expected to benefit from high oil prices in 2026 [6][7]. - It also highlights the potential for increased investment in oil and gas exploration and development, recommending companies such as CNOOC Services and Haiyou Engineering [6][7].

Investment Rating - The report maintains an "Accumulate" rating for both A and H shares of the company [8] Core Views - The company reported a total revenue of 2,864.5 billion RMB for 2025, a decrease of 2.5% year-on-year, with a net profit attributable to shareholders of 157.3 billion RMB, down 4.5% year-on-year [1] - The company’s Q4 revenue was 695.2 billion RMB, showing a quarter-on-quarter change of +2.2% and a year-on-year change of -3.3% [1] - The dividend per share for the year is set at 0.25 RMB, leading to a total cash dividend payout ratio of 54.7%, an increase of 2.5 percentage points from 2024 [1] - The report anticipates an increase in oil prices due to geopolitical factors, alongside continued growth in the company's natural gas business, justifying the "Accumulate" rating [6] Revenue and Profit Analysis - The company’s crude oil production increased by 0.7% to 948 million barrels, while the average selling price decreased by 14.2% to 64.11 USD per barrel [2] - The natural gas sales volume rose by 4.5% to 5,363.2 billion cubic feet, with unit operating costs remaining stable at 12.04 USD per barrel [2] - The operating profit from the oil and gas segment decreased by 14.8% to 136.07 billion RMB due to falling international oil prices [2] Refining and Chemical Business - The company processed 1,375.9 million barrels of crude oil, a slight decrease of 0.2%, with gasoline and diesel production down by 5.7% and 3.2%, respectively [3] - The refining segment's operating profit increased by 13.4% to 24.25 billion RMB, driven by higher refining margins [3] - Key projects in refining and chemical transformation are progressing steadily, including upgrades at Jilin and Guangxi Petrochemical [3] Sales and Marketing Performance - Total refined oil sales reached 16,081 million tons, a slight increase of 1.1%, while domestic sales fell by 0.4% [4] - The marketing segment's operating profit grew by 6.4% to 17.55 billion RMB, attributed to increased profits from LNG and charging services [4] Natural Gas Segment - The company sold 3,147 billion cubic meters of natural gas, a year-on-year increase of 7.0%, with domestic sales up by 5.6% [5] - The natural gas segment's operating profit rose by 12.6% to 60.8 billion RMB, driven by effective cost control and optimized resource allocation [5] Profit Forecast and Valuation - The report projects crude oil prices to rise to 84, 75, and 70 USD per barrel for 2026-2028, respectively, and raises the net profit forecast for 2026 to 199.1 billion RMB [6] - The target prices for A and H shares are set at 15.81 RMB and 13.63 HKD, respectively, reflecting a price-to-earnings ratio of 14.5x for A shares and 11.0x for H shares [6]

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Views - Geopolitical conflicts combined with weak demand have led to a decline in US gas prices, a high plateau in European gas prices, and an increase in domestic gas prices. The report emphasizes the resource value of Shouhua Gas and the cost advantages of long-term contracts held by companies like Xin'ao Co., Xin'ao Energy, and Jiufeng Energy [1][4] Price Tracking - As of March 27, 2026, the week-on-week changes in gas prices are as follows: US HH -1.3%, European TTF -5.6%, East Asia JKM -6%, domestic LNG ex-factory price +3.1%, and domestic LNG CIF price -9.4% [9][14] Supply and Demand Analysis - Geopolitical conflicts have increased export demand while heating demand has decreased, resulting in a week-on-week decline of 1.3% in US natural gas prices. As of March 20, 2026, the storage volume decreased by 540 billion cubic feet to 18,290 billion cubic feet, a year-on-year increase of 4.9% [16] - European gas prices have fluctuated at high levels due to ongoing geopolitical conflicts, with a week-on-week decline of 5.6%. In 2025, the total natural gas consumption in Europe was 452.1 billion cubic meters, a year-on-year increase of 2.9% [17] - The geopolitical situation has pushed up LNG CIF prices, leading to a week-on-week increase of 3.1% in domestic gas prices. In the first two months of 2026, China's apparent natural gas consumption increased by 0.8% year-on-year to 70.9 billion cubic meters [27] Pricing Progress - Nationwide price adjustments are gradually being implemented, with 68% (198 cities) of cities having conducted residential price adjustments, averaging an increase of 0.21 yuan per cubic meter. The report indicates that there is still a 10% room for price adjustment recovery [43] Important Announcements - The report highlights significant announcements, including the reduction of the US gas import tariff from 140% to 25%, which enhances the economic viability of US gas imports [47] Investment Recommendations - The report suggests focusing on companies with resource value and long-term contract cost advantages, specifically recommending Shouhua Gas, Xin'ao Co., Xin'ao Energy, and Jiufeng Energy. It emphasizes the importance of energy independence in light of rising gas prices due to geopolitical conflicts [1][4]

Investment Rating - The report maintains an "Accumulate" rating for both A and H shares of the company [8] Core Views - The company reported a total revenue of 2,864.5 billion RMB for 2025, a decrease of 2.5% year-on-year, with a net profit attributable to shareholders of 157.3 billion RMB, down 4.5% year-on-year [1][2] - The company’s Q4 revenue was 695.2 billion RMB, showing a quarter-on-quarter change of +2.2% and a year-on-year change of -3.3% [1] - The dividend per share for the year is set at 0.25 RMB, leading to a total cash dividend payout ratio of 54.7%, an increase of 2.5 percentage points from 2024 [1] - The report anticipates an increase in oil prices due to geopolitical factors, which may elevate the mid-term oil price average [6] Revenue and Profit Analysis - The company’s crude oil production increased by 0.7% to 948 million barrels, while the average selling price decreased by 14.2% to 64.11 USD per barrel [2] - The natural gas sales volume rose by 4.5% to 5,363.2 billion cubic feet, with a stable unit operating cost of 12.04 USD per barrel [2] - The refining segment saw a profit increase of 13.4% to 24.25 billion RMB, driven by improved refining margins [3] - The total sales volume of refined oil was 16,081 million tons, with domestic sales slightly declining by 0.4% [4] Natural Gas Segment Performance - The company sold 3,147 billion cubic meters of natural gas, a year-on-year increase of 7.0%, with domestic sales up by 5.6% [5] - The natural gas segment's operating profit grew by 12.6% to 60.8 billion RMB due to effective cost control and optimized resource procurement [5] Future Earnings Forecast - The report projects crude oil prices for 2026-2028 at 84/75/70 USD per barrel, with net profit estimates for 2026 and 2027 raised to 199.1 billion RMB and 194.5 billion RMB, respectively [6] - The expected earnings per share (EPS) for 2026 is 1.09 RMB, with a price-to-earnings (P/E) ratio of 14.5 for A shares and 11.0 for H shares [6] - The target prices are set at 15.81 RMB for A shares and 13.63 HKD for H shares, reflecting an increase from previous estimates [6]

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Petroleum, with current prices at 12.07 CNY and 10.97 HKD respectively [1]. Core Insights - The company reported a total revenue of 28,645 billion CNY in 2025, a decrease of 2.5% year-on-year, and a net profit attributable to shareholders of 1,573 billion CNY, down 4.5% year-on-year [5]. - The report highlights the resilience of the company's integrated business model in the face of fluctuating oil prices, with a significant improvement in cash flow, achieving a net operating cash flow of 4,125 billion CNY, up 1.5% year-on-year [6][7]. Summary by Sections Financial Performance - In Q4 2025, the company achieved a revenue of 6,952 billion CNY, a year-on-year increase of 2.2%, but a quarter-on-quarter decrease of 3.3%. The net profit for the same quarter was 310 billion CNY, down 2.7% year-on-year and 26.6% quarter-on-quarter [5]. - The upstream business was impacted by falling oil prices, resulting in an operating profit of 1,361 billion CNY, down 14.8% year-on-year. However, the natural gas sales business saw an operating profit of 608 billion CNY, up 12.6% year-on-year [7][8]. Segment Analysis - The upstream segment focused on cost reduction and increasing reserves, with a total oil and gas equivalent production of 1,842 million barrels, a year-on-year increase of 2.5% [8]. - The natural gas sales segment reported a significant profit increase, driven by higher sales volumes and effective cost control, achieving a profit of 608 billion CNY, with sales volume reaching 3,147 billion cubic meters, up 7.0% year-on-year [9]. - The refining and chemical segment achieved an operating profit of 243 billion CNY, up 13.4% year-on-year, despite challenges in the chemical market [10]. Shareholder Returns - The company proposed a final dividend of 0.25 CNY per share, maintaining the highest level of absolute dividends in history, with a total payout of 860.2 billion CNY and a payout ratio of 54.7% [12]. Strategic Outlook - The company plans to maintain high capital expenditures, with a 2026 upstream capital expenditure budget of 220.8 billion CNY, a 7.7% increase from 2025, to ensure growth in production and reserves [13]. - The report emphasizes the strategic value of the company in energy supply security amid geopolitical uncertainties, particularly in light of ongoing conflicts affecting oil supply routes [13]. Profit Forecast and Valuation - The report projects net profits for 2026, 2027, and 2028 to be 1,902 billion CNY, 1,959 billion CNY, and 2,018 billion CNY respectively, reflecting an upward revision due to recent geopolitical events impacting oil prices [14][15].