Event: the company recently released its mid-year report in 2019, with a total operating income of 16.346 billion yuan, down 0.54% from the same period last year; and a net profit of 4.08 billion yuan, up 0.27% from the same period last year, down 0.37% from the same period last year; by the end of the first half of 2019, PetroChina's total capital assets were 918.26 billion yuan, up 3.01% from the beginning of the year; and the net assets at the end of the period were 80.057 billion yuan, up 3.46% from the beginning of the year. EPS is 0.45 yuan per share.
The performance of financial companies and financial leasing has risen, while the performance of banks and trusts has declined. In the first half of the year, the total operating income of the finance company was 8.204 billion yuan, up 5.14% from the same period last year; the total operating income from the financial leasing business was 1.749 billion yuan, up 6.34% from the same period last year; the total operating income from the commercial banking business was 5.367 billion yuan, down 8.91% from the same period last year; the total operating income from the trust business was 330 million yuan, down 18.08% from the same period last year; and the total operating income from other businesses was 696 million yuan, up 1.34% from the same period last year.
Rely on the advantages of shareholders to create a "one-stop" financial service platform. The company uses the resources of Petrochina Company Limited Group to deepen the business of industry-finance integration, and establishes a sub-regional and sub-line industry-finance combination coordination mechanism around the oil and gas industry chain. Under the premise that Petrochina Company Limited Group has achieved full coverage of industry-finance integration regional coordination mechanism, we will promote the full coverage of financial products and services. The company gives full play to the advantage of resource integration, establishes strategic partnerships with major banks, and obtains the support of comprehensive credit lines of 10 banks, including China Development Bank, Industrial and Commercial Bank of China, China Merchants Bank, etc. As of June 30, 2019, the deposit balance of Petrochina Company Limited Group and its subordinate companies with the Company and its subordinate financial enterprises was 277.211 billion yuan, the balance of loans and financing leases receivable was 185.147 billion yuan, the commitment of leased assets was 195.1446 million yuan, the loan commitment was 58.346 billion yuan, and issued a letter of guarantee of 401 million yuan.
The shareholders of the three parties increased the capital of CNPC Finance by more than 22 billion yuan. In July 2019, the general meeting of the company agreed that CNPC Capital Co., Ltd. and Petrochina Company Limited Group and Petrochina Company Limited shares should respectively increase their capital to CNPC Finance according to the proportion of their shareholdings. the total amount of capital increase is 22.064 billion yuan, of which, the financial capital reserve of CNPC is increased by 8.064 billion yuan, and the cash capital of the three shareholders is increased by 14 billion yuan (3.605 billion yuan of the cash capital increase, the rest is included in the financial capital reserve of CNPC).
Investment suggestion: PetroChina Capital relies on the industrial background, and its business scope covers many areas such as banking, financial companies, financial leasing, trust, insurance, insurance brokerage, securities, credit promotion and so on. Give a rating of "overweight".
Risk hints: the risk of market fluctuations; the risks brought about by the macroeconomic downturn.