Guoyuan Hong Kong maintains the China Oil & Gas (00603-HK) purchase investment rating. The target price is HK$1.2. The target price is equivalent to 28.6 times and 19.8 times the earnings per share in 2010 and 2010. The target price has room to rise 38% from the current price. According to Guoyuan, the company's turnover for the first half of the year was HK$1.01 billion, up 38% year on year, gross profit of HK$310 million, up 49% year on year, and net profit of HK$87.79 million, 10% year over year. Excluding the impact of one-time earnings in the same period of the year, profit increased 61% and profit per share of HK1.794 cents. CNPC dropped 4.40% yesterday to close at HK$0.87.