[ET Net News Agency, 2 September 2019] Credit Suisse raised its target price for CNOOC
(00883) to HK$17.2 from HK$17 and maintained its "outperform" rating.
The research house said CNOOC's 1H net profit of Rmb30bn (+19%) was a beat, tracking 59%
of Credit Suisse's FY2019 estimate, thanks to another positive surprise on costs and
better oil realisations.
Credit Suisse believes CNOOC is on track to hit the high-end of 480-490mmboe FY2019
target. Management voiced confidence in 2H volumes with more new start-ups, while not
committing to the high-end citing external factors (e.g., typhoon).
Credit Suisse lifted its 2019-21 EPS forecasts by 5-20% factoring in a lower cost
trajectory. After a 15% correction in the past month, CNOOC now trades at 7x 2019 P/E/4x
EV/EBITDA, and Credit Suisse thinks the current share price provides a very good entry
point. (KL)