Sou Hu Cai Jing·2025-08-06 05:18Core Viewpoint - HSBC Research indicates that both oil prices and supply issues are exerting a dual short-term pressure on the profitability of PetroChina and CNOOC, with expected declines in net profit for the second quarter of 22% to 23% year-on-year [1] Group 1: Company Analysis - HSBC expects PetroChina's net profit to decline by 22% to 23% year-on-year for the second quarter due to weak oil prices and demand [1] - CNOOC is also projected to experience a similar decline in net profit, reflecting the broader industry challenges [1] - Despite the expected profit drop, PetroChina may be less affected due to improvements in its natural gas business, which includes expanded domestic sales and reduced mixed gas import costs [1] Group 2: Investment Outlook - HSBC maintains a "Buy" rating for both PetroChina and CNOOC, indicating a positive outlook despite the anticipated profit declines [1] - Sinopec is rated as "Hold" due to pressure on its cash flow, suggesting a more cautious stance on its investment potential [1] - The report emphasizes the increasing importance of cash flow for maintaining dividend distributions in the current market environment [1]