HSBC research report pointed out that the performance of the Chinese oil giant continues to outperform, with a cumulative increase of 10% to 50% from the beginning of the year to the present, compared with a cumulative increase of 7% for the same period of the Hang Seng Index, mainly due to the rise in oil prices and stable production growth. In the current context of state-owned enterprise reform, investors are seeking more resilient returns. The bank maintains a positive view of oil stocks because the current yield ranges from 6% to 7%, which is still attractive to domestic investors, and with strong cash flow, there may be potential to further increase dividends. The bank expects that in the current operating environment where cash flow has become more reliable, it believes that oil stocks are expected to be further revalued, so the bank raises its target price for oil stocks by 2% to 37%. However, since last year's return of 30% to 120%, marginal improvement may begin to weaken due to fundamental constraints. The bank continues to be bullish on PetroChina because its cash flow is relatively stable with oil prices, followed by CNOOC, despite the latter being more dependent on the trend of crude oil prices. Sinopec Corp is maintained at a hold rating.