Glonghui, April 1 | Bank of America Securities released a research report stating that it reaffirmed the “buy” rating of CNPC, indicating that management focuses on investor returns and has a stable and high-level dividend payment policy. Considering recent valuations of state-owned enterprises, the target price for H shares was raised from HK$5 to HK$5.2. The bank attended the China Petrochemical Industry performance conference. Management expects domestic demand for oil and gas and refined oil products to normalize in the 2024 fiscal year, consumption of petroleum and refined oil products will increase by low to medium units, and demand for natural gas is expected to increase 6.4% year on year. The bank pointed out that management is cautious about the recent domestic chemical market, because with the recent successive commissioning of chemical projects, the growth rate of chemical production capacity has exceeded the growth rate of demand; due to the high cost of raw materials, profits for chemical products are meager. Management expects chemical business profits to gradually return to normal levels as additional production capacity is digested and backward production capacity is replaced.