[ET Net News Agency, 1 November 2019] HSBC Global Research lowered its target price for
PetroChina (00857) to HK$4.8 from HK$5.46 and maintained its "buy" rating.
The research house said PetroChina's disappointing 3Q/9-month performance was negatively
impacted by downstream segments. Severe challenges are likely to continue to sustain into
4Q and 2020.
As production reached 76% of the full-year target, HSBC sees some likelihood of a volume
beat although management restated existing production guidance.
But HSBC sees headwinds from lower crude prices restraining upstream profits into 2020
and increased competition and slower demand growth pressuring downstream profitability.
HSBC cut its 2019/20/21 earnings forecasts by -18%/-10%/-3%. (KL)