Glonghui, April 30 | Bank of America Securities released a report showing that CNPC's first quarter performance was strong. Among them, the natural gas sales sector recorded a profit of 12.3 billion yuan, an increase of 22% year-on-year, mainly due to a 4% increase in the average domestic gas sales price, a surprise increase in gas prices, and an 8% increase over the same period last year; in addition, natural gas import losses narrowed from 2.4 billion yuan to 1 billion yuan in the same period last year. The bank believes that CNPC's natural gas business will maintain its profit momentum due to the high average sales price of natural gas in the 2024/2025 long-term contract between CNPC and City Gas; domestic natural gas production has increased significantly (target is about 5%-8%) and costs are competitive; and under lower spot natural gas prices, the imported natural gas business has improved. The bank added that the Group's operating cash flow in the first quarter reached 111.1 billion yuan, maintaining a stable level, which is conducive to supporting its dividend policy. Meanwhile, capital expenditure for the first quarter reached 56 billion yuan, an increase of 10% year-on-year, equivalent to 22% of the 2024 budget. Based on oil price and gas growth supporting stable profits, an attractive valuation, dividend yield of 7%, and the potential upward surprise of the capital management action plan until June 2024, the bank maintained its “buy” rating with a target price of HK$9.