CLSA lowered its target price for PetroChina (00857) to HK$2.5 from HK$3.07 and reiterated its "outperform" rating.
The research house said PetroChina reported a robust net profit of Rmb40bn, up 352%, aided by a notable profit from the spin-off of pipeline assets. With the completion of the
a spin-off of pipeline assets, PetroChina will reduce capex burden and improve the balance sheet but will lose its dominant position within China's pipeline assets.
The economic slowdown due to COVID-19 hurt global energy demand more and for longer than previously feared, CLSA added.