PETROCHINA(00857) 第一上海证券·2024-07-08 10:01Investment Rating - The report assigns a "Buy" rating for the company [1]. Core Views - The company is positioned as a leading integrated oil and gas operator in China, benefiting from a comprehensive upstream and downstream operational structure, which enhances its risk resilience and profitability [1][7]. - The company is expected to maintain stable revenue growth in its oil and gas and new energy segments, with projected revenues of 1,732 billion, 1,895 billion, and 2,001 billion RMB for 2024-2026, reflecting year-on-year increases of 7%, 9%, and 6% respectively [1][7]. - The target price for the company's stock is set at 10.06 HKD, indicating a potential upside of 19.3% from the current price [1]. Summary by Sections Company Overview - The company, known as China National Petroleum Corporation (CNPC), is the largest oil and gas producer and seller in China and ranks third among the world's top oil companies [3][7]. - Its main business segments include oil and gas exploration, production, transportation, sales, refining, and new energy [3][7]. Financial Performance - In 2023, the company reported total revenues of 30,110.12 billion RMB, a decrease of 7.04% year-on-year, while net profit attributable to shareholders increased by 8.34% to 1,611.46 billion RMB [7]. - The company's oil and gas production reached 1,759.2 million barrels in 2023, a year-on-year increase of 4.4% [17]. Oil and Gas Segment - The company's oil and gas exploration and production revenues are highly correlated with international oil prices, which are expected to remain elevated due to ongoing global economic recovery and seasonal demand [1][27]. - The company has a robust resource base, with proven oil and gas reserves totaling 18,352 million barrels as of 2023 [26]. Natural Gas Business - The company is actively developing unconventional natural gas resources and has introduced foreign resources to enhance supply channels [66]. - The natural gas sales volume reached 2,198 billion cubic meters in 2023, reflecting a year-on-year growth of 6% [66]. Refining and Chemical Segment - The refining and chemical segment is expected to see improved profitability due to a recovery in product prices and stable demand for refined products [42]. - The company processed 1,399 million barrels of crude oil in 2023, marking a 15.3% increase from the previous year [41]. Sales and Marketing - The company has expanded its marketing efforts, resulting in a significant increase in sales volumes for gasoline, kerosene, and diesel, which totaled 166 million tons in 2023, a 10.1% increase year-on-year [73]. - The company operates approximately 22,800 gas stations, accounting for 20% of the national total, which supports its integrated operational strategy [72].