On July 10th, Guolong News | Huafu Securities Research report pointed out that during the period of domestic energy upgrading and transformation, oil and gas resources will continue to play a steady ballast role in ensuring China's energy security. As one of the world's largest oil and gas exploration and development companies, PetroChina has stable capital expenditure growth and maintains a low cost of oil production. Under the trend of high oil prices, its profitability is highlighted. The company has strong momentum after increasing reserves and production, continuous breakthroughs in technology, and sustained reduction in the cost of oil production. We select PetroChina and China Petroleum & Chemical Corporation as comparable companies, they have high similarity in products, channels and other aspects. First coverage given a "buy" rating.