Zhitan Finance and Economics App learned that Goldman Sachs released a research report stating that after the three major oil companies announced their third-quarter performance, earnings forecasts were updated. The target price for PetroChina (00857) was slightly lowered from 8.2 Hong Kong dollars to 8.1 Hong Kong dollars, with a "buy" rating. Goldman Sachs rated CNOOC (00883) as a "buy," with the target price increasing slightly from 23.3 Hong Kong dollars to 23.5 Hong Kong dollars. Sinopec (00386) was rated as "neutral," with the H shares target price lowered from 4.8 Hong Kong dollars to 4.5 Hong Kong dollars.

The analysis by the bank shows that PetroChina's valuation remains one of the lowest among global peers, with PetroChina's H shares currently discounted against a long-term Brent price of $65 per barrel. Meanwhile, by 2025, PetroChina's dividend and free cash flow yield still maintained robust levels of around 8% and 14% respectively. It is also believed that the current stock price of CNOOC is currently discounted against a long-term Brent price of $57 per barrel. In addition, due to the long-term oversupply in the chemicals market and increased capital expenditures, the bank expects Sinopec to go through a period of weakened free cash flow. Therefore, within the bank's coverage, there is a tendency towards more upstream companies, namely PetroChina and CNOOC.