[ET Net News Agency, 1 August 2019] Morgan Stanley cut its target price for PetroChina
(00857) to HK$5.21 from HK$5.89 and maintained its "overweight" rating.
The research house said PetroChina is significantly undervalued but needs reform
clarification to unlock the hidden value. PetroChina is trading at its HK$4.20 trough
level, seen previously when oil prices stood at just US$30. Its earnings have improved
continuously from the Rmb7.9bn trough in 2016 to Rmb53bn in 2018. 2019 EV/EBITDA is just
3.5x, a 35% discount to the global average.
Despite such undervaluation, Morgan doesn't expect any material re-rating until there is
reform to remove the uncertainty on pipeline valuation, which is significant and critical
to PetroChina's shareholder value. It expects the 'National Pipeline Company' to be
established in 3Q, which is a prerequisite to remove this overhang. (KL)
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00857 PETROCHINA
Nominal 
7.320 -0.110 (-1.480%) Others
01/08/2019 16:47
{I-bank focus}Morgan cuts PetroChina (00857) to HK$5.21
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
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