[ET Net News Agency, 4 March 2021] HSBC Global Research lifted its target price for
PetroChina (00857) to HK$3 from HK$2.6 and maintained its "hold" rating.
The research house said PetroChina issued a profit warning issued on 29 January 2021.
HSBC thus made the following adjustments to its forecasts (1) 2020 cut 44% to match
guidance by adding a large impairment in E&P; (2) reflect the 2021 increase in HSBC's
Brent assumption to US$56/bbl to reflect 1Q 2021 strength and incorporated gains on
additional corporate action related to the pipeline as per exchange disclosures; and (3)
2022 increased income taxes, which have been running consistently near 35% post the
acquisition of the Abu Dhabi upstream assets.
This produces earnings changes of -44%/+12%/-9% over 2020/21/22. (KL)