[ET Net News Agency, 20 September 2018] UBS Global Research lowered its target price
for PetroChina (00857) to HK$7.8 from HK$8.1, and maintained its "buy" rating.
The research house said its investment case has included: (1) leverage to crude oil
prices; (2) monetization of gas resources; (3) market de-risking of pipeline assets; and
(4) upside risk to market dividend expectations.
UBS believes that PetroChina's exposure to low sulphur diesel and kerosene should
benefit as low sulphur regulations are enforced locally and globally during 2020-2021, in
particular with IMO 2020. This could create a respite for a domestic market that
experienced a growing glut the last 2-3 years.
UBS adjusted its 2018-20 EBIT forecasts by -5%, +1%, and -2% (downgraded E&P but
upgraded refining and marketing, chemicals and pipeline). It lowered its 2018-20 EPS
forecasts by a larger 11-18% mostly due to higher taxes. (KL)
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00857 PETROCHINA
Nominal 
7.360 +0.090 (+1.238%) Others
20/09/2018 11:59
[I-bank focus]UBS lowers PetroChina (00857) to HK$7.8
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