Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company, with target prices set at RMB 33.41 and HKD 27.04 respectively [2][6][8]. Core Insights - The company reported a revenue of RMB 312.5 billion for the first three quarters, a year-on-year decrease of 4%, and a net profit attributable to shareholders of RMB 102 billion, down 13% year-on-year [2]. - The third quarter saw a revenue of RMB 104.9 billion, with a quarter-on-quarter growth of 6% and a year-on-year decline of 4% [2]. - The decline in net profit was attributed to the depreciation of the US dollar against the RMB and lower-than-expected oil production due to typhoons and asset sales in the Gulf of Mexico [2]. - The company has shown resilience against oil price fluctuations, with effective cost reduction and quality improvement measures [2]. Revenue and Production - The company's oil and gas net production reached 578.3 million barrels of oil equivalent, a year-on-year increase of 6.7%, with oil liquid and gas production growing by 5.4% and 11.6% respectively [3]. - Brent crude oil prices averaged USD 68.2 per barrel in Q3, down 13.4% year-on-year, while the company's realized oil price was USD 66.2 per barrel, a decrease of 12.8% [3]. - The overall gross margin decreased by 2.2 percentage points year-on-year to 52.2%, with Q3 gross margin at 49.8% [3]. Market Conditions - Oil prices have entered a downward trend due to the end of the peak season and increased supply from OPEC+, with WTI and Brent crude prices reported at USD 60.48 and USD 64.92 per barrel respectively [4]. - The report predicts that global oil supply will face excess pressure, particularly from the Middle East, starting in Q4 2025 [4]. Capital Expenditure and Projects - The company completed capital expenditures of RMB 86 billion in the first three quarters, a decrease of 10% year-on-year, with significant progress in key projects [5]. - New discoveries and projects have been successfully evaluated and put into production, contributing to future growth [5]. Profit Forecast and Valuation - The net profit forecast for 2025-2027 has been adjusted downwards to RMB 128 billion, RMB 122.9 billion, and RMB 129.6 billion respectively, reflecting a decrease of 3.3%, 2.6%, and 1.9% from previous estimates [6]. - The report assigns a price-to-earnings ratio of 12.9x for 2026, with target prices reflecting the company's high oil production ratio and sensitivity to oil price changes [6].

Investment Rating - The report maintains a "Buy" rating for the company in both A and H shares [8]. Core Insights - The company reported a net oil and gas production of 188.8 million barrels of oil equivalent in Q1, representing a year-on-year increase of 4.8%. The breakdown includes 145.5 million barrels of oil and 253.0 billion cubic feet of natural gas [2]. - The average Brent futures price in Q1 decreased by 8.3% year-on-year to $75.0 per barrel, while the company's realized oil price fell by 7.7% to $72.7 per barrel, indicating a narrowing discount [2]. - The company has effectively controlled its five key cost metrics, with Q1 costs decreasing by $0.56 per barrel to $27.03 per barrel. Future reductions in costs are anticipated due to economies of scale [2]. - The company has set its full-year capital expenditure guidance for 2025 at RMB 125-135 billion and has raised the lower limit of its dividend payout ratio for 2025-2027 to 45%, up from 40% for 2022-2024, resulting in a dividend yield of 5.2% for A shares and 8.0% for H shares based on the closing price on June 5 [2][5]. Summary by Sections Production and Financial Performance - The company aims to increase its natural gas production, leveraging domestic gas consumption growth and focusing on three major gas fields. The production structure is expected to stabilize at 78:22 in favor of oil [3]. - The company’s net profit forecasts for 2025-2027 are RMB 142.5 billion, RMB 144.1 billion, and RMB 148.4 billion, respectively, with EPS projected at RMB 3.00, RMB 3.03, and RMB 3.12 [5][22]. Market and Pricing Outlook - The report notes that the OPEC group has continuously raised its production targets, leading to fluctuations in oil prices. The Brent crude oil price forecast for 2025-2026 is maintained at $67 and $66 per barrel, respectively [4]. - The company is expected to benefit from the commencement of production in its overseas projects, such as the Buzios 7 project in Brazil and the Stabroek block in Guyana, which are projected to contribute significantly to low-cost production increases [3]. Valuation Metrics - The report maintains a target price of RMB 37.50 for A shares and HKD 27.42 for H shares, based on a cautious valuation approach of 12.5x PE for A shares and 8.5x PE for H shares [5].

Investment Rating - The report maintains a "Buy" rating for the company in both A and H shares [8]. Core Views - The company achieved a Q1 revenue of 106.9 billion RMB, with a year-on-year increase of 13.1% despite a quarter-on-quarter decrease of 4.1% [1]. - The net profit attributable to the parent company for Q1 was 36.6 billion RMB, reflecting a significant year-on-year increase of 71.8% [1]. - The company has shown resilience against oil price fluctuations due to effective cost control and production optimization [1]. Summary by Sections Financial Performance - Q1 oil and gas net production reached 188.8 million barrels of oil equivalent, a year-on-year increase of 4.8% [2]. - The average Brent crude price in Q1 was 75.0 USD per barrel, down 8.3% year-on-year, while the company's realized oil price was 72.7 USD per barrel, a decrease of 7.7% [2]. - The company managed to reduce its oil cost to 27.03 USD per barrel, a decrease of 0.56 USD year-on-year [2]. Market Conditions - The international oil prices fell significantly in April due to the U.S. "reciprocal tariff" policy and OPEC+'s unexpected production increase [3]. - The report predicts Brent crude prices to average 67 USD in 2025 and 66 USD in 2026, with a long-term price floor expected to be above 60 USD per barrel [3]. Project Development - The company successfully launched 7 new projects in Q1, including significant developments in Brazil and Bohai Bay [4]. - Capital expenditures in Q1 were 27.7 billion RMB, a decrease of 4.5% year-on-year, with exploration and development expenditures showing varied trends [4]. Profit Forecast and Valuation - The report forecasts net profits for 2025, 2026, and 2027 to be 142.5 billion, 144.1 billion, and 148.4 billion RMB respectively, with EPS projected at 3.00, 3.03, and 3.12 RMB [5]. - The target prices for A and H shares are set at 37.50 RMB and 27.42 HKD respectively, based on a PE ratio of 12.5x for 2025 [5].

Investment Rating - The report maintains a "Buy" rating for the company A/H shares [5][8]. Core Views - The company achieved a revenue of 420.5 billion RMB in 2024, a year-on-year increase of 1%, and a net profit attributable to shareholders of 137.9 billion RMB, up 11% year-on-year [1]. - The company has demonstrated strong performance in reserve additions and production growth, alongside effective cost reduction measures [2]. - The report anticipates a decline in oil prices for 2025-2026, adjusting profit forecasts downward but still projecting growth in net profit [5]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 94.5 billion RMB, a decrease of 14% quarter-on-quarter, and a net profit of 21.3 billion RMB, down 19% quarter-on-quarter [1]. - The average Brent price in 2024 was 79.9 USD per barrel, a decrease of 2.8% year-on-year, while the company's realized oil price was 76.8 USD per barrel, down 1.6% year-on-year [2]. Production and Cost Efficiency - The company's net oil and gas production reached 726.8 million barrels of oil equivalent in 2024, an increase of 7.2% year-on-year [2]. - The company achieved a barrel of oil cost of 28.52 USD, a decrease of 1.1% year-on-year, with a gross margin increase of 3.7 percentage points to 53.6% [2]. Capital Expenditure and Future Projects - The company invested 132.5 billion RMB in capital expenditures in 2024, a 2.2% increase year-on-year, supporting future production and efficiency improvements [4]. - The company made 11 new discoveries and evaluated 30 oil and gas structures, with key projects like the Bohai Zhong 19-2 oil field and deep-sea gas development coming online [4]. Profit Forecast and Valuation - The report projects net profits of 142.5 billion RMB for 2025, down from previous estimates due to anticipated lower oil prices [5]. - The target prices for A/H shares are set at 37.50 RMB and 27.72 HKD, respectively, based on a price-to-earnings ratio of 12.5x for 2025 [5].