BofA Securities: Raises PETROCHINA (00857) Target Price to HK$12; Q3 Results in Line with Expectations

BofA Securities issued a research report stating that PETROCHINA's (00857, 601857.SH) third-quarter results were in line with expectations. The bank raised its 2026 earnings forecast and target price, reiterated its "Buy" rating, and lifted the H-share target price from HK$11.5 to HK$12, with the A-share target price correspondingly raised from RMB13 to RMB15. The bank noted that under International Financial Reporting Standards, PETROCHINA's net profit for the first nine months of 2026 was RMB156 billion, up 22% year-on-year; third-quarter net profit was RMB52 billion, up 22% year-on-year and down 7% quarter-on-quarter, in line with expectations. Operating cash flow for the first nine months was RMB374 billion, up 9% year-on-year; capital expenditure was RMB159 billion, down 10% year-on-year, equivalent to about 57% of the full-year budget. The bank noted that third-quarter exploration and production operating profit was RMB52 billion, up 31% year-on-year and down 13% quarter-on-quarter, mainly reflecting oil price trends; it estimated the company's realized oil price at US$80 per barrel, up 30% year-on-year and down 7% quarter-on-quarter, at a discount of about US$10 per barrel to Brent. After raising its Brent oil price assumptions for the fourth quarter of 2026 and for 2027 to US$100 per barrel and US$80 per barrel respectively, the bank raised its net profit forecasts for 2026 and 2027 by 8% and 13% respectively to RMB200 billion and RMB178 billion.