PETROCHINA(601857) 中银国际·2024-10-31 07:55Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by more than 20% over the next 6-12 months [2][4]. Core Views - The company achieved a net profit of 132.52 billion RMB in the first three quarters of 2024, a year-on-year increase of 0.7%, despite a 1.1% decline in revenue [2][3]. - The third quarter saw a net profit of 43.91 billion RMB, which is a 2.3% increase compared to the previous quarter, showcasing the company's ability to enhance profitability amid challenging market conditions [2][3]. - The report highlights the optimization of the company's asset-liability structure, with a debt-to-asset ratio of 39.5%, the lowest in nearly 14 years [3]. - The upstream natural gas production increased by 4.0% year-on-year, indicating growth potential in oil and gas exploration and development [3]. - The chemical business showed a significant profit increase, with operating profit rising to 3.499 billion RMB, a year-on-year increase of 33.68 billion RMB [3]. - The natural gas sales volume increased by 8.6% year-on-year, reflecting strong demand driven by China's economic development and energy transition [3]. Summary by Sections Financial Performance - In Q3 2024, the company reported total revenue of 702.41 billion RMB, a decrease of 12.5% year-on-year, while total costs were 650.06 billion RMB, down 11.75% [9]. - For the first three quarters of 2024, total revenue was 22,562.79 billion RMB, with total costs at 20,889.44 billion RMB, showing a slight decline in revenue but effective cost management [8]. Profitability Metrics - The company's net profit for the first three quarters of 2024 was 132.52 billion RMB, with a projected net profit of 171.35 billion RMB for 2024, corresponding to a P/E ratio of 9.5 times [4][6]. - The report forecasts net profits of 182.56 billion RMB and 192.09 billion RMB for 2025 and 2026, respectively, indicating a steady growth trajectory [4]. Operational Highlights - The company processed 1,036.2 million barrels of crude oil in the first three quarters of 2024, with a slight decrease of 0.7% year-on-year, while chemical product output increased by 9.7% [3]. - The report emphasizes the company's focus on upgrading its refining and chemical operations, which is expected to enhance profitability in the future [3].