According to the 36kr APP, Citigroup released a research report stating that PetroChina (00857) has an 'Outperform' rating, with a target price of 8.2 Hong Kong dollars for its H shares.

PetroChina is the largest integrated petroleum company in the mainland, covering upstream exploration, downstream, and natural gas businesses. Its recovery in the natural gas business, along with a more resilient downstream profit capability, shows a reduced dependence of PetroChina on its upstream exploration sector. Even under pressure on oil prices, this should translate into more stable earnings, increasing investor confidence in the sustainability of its dividends.

The bank pointed out that the mainland has introduced more favorable natural gas pricing policies this year, coupled with a relaxed attitude towards public utility price hikes by the government, indicating that PetroChina will be able to significantly raise natural gas prices during the high-demand winter season. In addition, the company will have several new downstream facilities between 2023 and 2026, aimed at producing higher-margin chemical products. In addition to natural gas, the company is also achieving energy transformation through various means to meet its 2025 target.