HSBC: Raise target price of China Petroleum shares to 8 Hong Kong dollars, maintain "buy" rating.

DBS released a research report stating that China Petroleum's performance in the second quarter of 2025 slightly exceeded expectations, with net profit decreasing by 13% year-on-year to 37 billion yuan, mainly due to a 20% decline in oil prices. The bank believes that oil prices seem to have stabilized in the range of $65-70 per barrel, and the market is concerned that excess downstream supply may ease. DBS pointed out that China Petroleum's mid-term dividend is 0.22 yuan per share, better than expected; the expected full-year dividend is 0.44 yuan per share, with a dividend yield of 6.5%. Maintaining a "buy" rating on the stock, the target price has been raised from 7.3 Hong Kong dollars to 8 Hong Kong dollars, as the valuation model has been updated to the 2026 fiscal year, and the valuation of downstream business has been slightly adjusted upwards.