SEHK:857

Stock Analysis Report

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Executive Summary

PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has PetroChina's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 857 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

857

4.2%

HK Oil and Gas

4.1%

HK Market


1 Year Return

-36.0%

857

-28.2%

HK Oil and Gas

-5.2%

HK Market

Return vs Industry: 857 underperformed the Hong Kong Oil and Gas industry which returned -28.2% over the past year.

Return vs Market: 857 underperformed the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

857IndustryMarket
7 Day4.2%4.2%4.1%
30 Day5.4%6.0%3.5%
90 Day-9.0%-9.0%-5.3%
1 Year-33.1%-36.0%-24.2%-28.2%-2.0%-5.2%
3 Year-40.7%-46.3%-23.5%-35.9%-0.4%-10.6%
5 Year-64.4%-68.9%-43.1%-53.2%-9.0%-23.3%

Price Volatility Vs. Market

How volatile is PetroChina's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PetroChina undervalued compared to its fair value and its price relative to the market?

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 857 (HK$2.74) is trading below our estimate of fair value (HK$4.68)

Significantly Below Fair Value: 857 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 857 is poor value based on its PE Ratio (24x) compared to the Oil and Gas industry average (6x).

PE vs Market: 857 is poor value based on its PE Ratio (24x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 857 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 857 is good value based on its PB Ratio (0.4x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is PetroChina forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

70.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 857's forecast earnings growth (70.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 857's earnings (70.4% per year) are forecast to grow faster than the Hong Kong market (16.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 857's revenue (7.6% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 857's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 857's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

How has PetroChina performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 857 has high quality earnings.

Growing Profit Margin: 857's current net profit margins (0.8%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 857's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: 857's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 857 had negative earnings growth (-63.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (1.8%).


Return on Equity

High ROE: 857's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is PetroChina's financial position?


Financial Position Analysis

Short Term Liabilities: 857's short term assets (CN¥487.4B) do not cover its short term liabilities (CN¥712.0B).

Long Term Liabilities: 857's short term assets (CN¥487.4B) do not cover its long term liabilities (CN¥586.6B).


Debt to Equity History and Analysis

Debt Level: 857's debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: 857's debt to equity ratio has reduced from 42.4% to 37.3% over the past 5 years.

Debt Coverage: 857's debt is well covered by operating cash flow (52.4%).

Interest Coverage: 857's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is PetroChina's current dividend yield, its reliability and sustainability?

5.71%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 857's dividend (5.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).

High Dividend: 857's dividend (5.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 857's dividend payments have been volatile in the past 10 years.

Growing Dividend: 857's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.9%), 857's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 857's dividends in 3 years are not forecast to be well covered by earnings (111.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Liangwei Duan (51yo)

0.25

Tenure

Mr. Liangwei Duan has been President and Executive Director of PetroChina Company Limited since March 9, 2020 served as its Non-Executive Director since June 8, 2017 until March 9, 2020. Mr. Duan has been  ...


Leadership Team

NamePositionTenureCompensationOwnership
Liangwei Duan
Executive Director & President0.25yrno datano data
Shouping Chai
Chief Financial Officer3.42yrsCN¥1.02mno data
Enlai Wu
Secretary to the Board of Directors6.58yrsCN¥1.02mno data
Longde Sun
Vice President13yrsCN¥1.10mno data
Luguang Li
Vice President2yrsCN¥976.00kno data
Jinghui Tian
Vice President4.58yrsCN¥974.00kno data
Xiao Ling
Vice President2.5yrsCN¥981.00kno data
Jigang Yang
Vice President2.5yrsCN¥979.00kno data
Xia Hong Wei
Chairman of Singapore Petroleum Company and Managing Director of PetroChina - Singaporeno datano datano data
Wei Fang
Assistant Secretary of the Boardno datano datano data

3.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 857's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Liangwei Duan
Executive Director & President0.25yrno datano data
Xia Hong Wei
Chairman of Singapore Petroleum Company and Managing Director of PetroChina - Singaporeno datano datano data
Houliang Dai
Chairman of the Board0.25yrno datano data
Wenrong Xu
Chairman of Supervisory Committee3yrsno datano data
Tokuchi Tatsuhito
Independent Non-Executive Director3yrsCN¥351.00kno data
Oi-Sie Leung
Independent Non-Executive Director3yrsCN¥319.00kno data
Fanrong Li
Non-Executive Vice Chairman0.25yrno datano data
Biyi Zhang
Independent Non Executive Director5.67yrsCN¥386.00kno data
Boqiang Lin
Independent Non-Executive Director6.08yrsCN¥386.00kno data
Yuezhen Liu
Non-Executive Director6.08yrsno datano data

3.0yrs

Average Tenure

58yo

Average Age

Experienced Board: 857's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PetroChina Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PetroChina Company Limited
  • Ticker: 857
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: HK$823.929b
  • Shares outstanding: 183.02b
  • Website: https://www.petrochina.com.cn

Number of Employees


Location

  • PetroChina Company Limited
  • No. 9 Dongzhimen North Street
  • Dongcheng District
  • Beijing
  • Beijing Province
  • 100007
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTRNYSE (New York Stock Exchange)ADS EACH REPR 100 H SHS HKD0.10LVLIIIUSUSDApr 2000
PC6ADB (Deutsche Boerse AG)ADS EACH REPR 100 H SHS HKD0.10LVLIIIDEEURApr 2000
K3ODSGX (Singapore Exchange)ADS EACH REPR 100 H SHS HKD0.10LVLIIISGUSDApr 2000
PTR NBMV (Bolsa Mexicana de Valores)ADS EACH REPR 100 H SHS HKD0.10LVLIIIMXMXNApr 2000
0A2RLSE (London Stock Exchange)ADS EACH REPR 100 H SHS HKD0.10LVLIIIGBUSDApr 2000
857SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDApr 2000
PCCY.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDApr 2000
PC6DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURApr 2000
857SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 2000
857SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 2000
601857SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYNov 2007
601857XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYNov 2007

Biography

PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline segments. The company’s Exploration and Production segment engages in the exploration, development, production, and marketing of crude oil and natural gas. Its Refining and Chemicals segment refines crude oil and petroleum products; and produces and markets primary petrochemical products, derivative petrochemical products, and other chemical products. The company’s Marketing segment is involved in marketing of refined products and trading business. Its Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and sale of natural gas. As of December 31, 2019, the company had a total length of 87,144 km, including 53,291 km of natural gas pipelines, 20,091 km of crude oil pipelines, and 13,762 km of refined product pipelines. The company is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; import and export of goods and technology; and import and export agency business, as well as provision of technology promotion, professional contractor, and main contractor services; and production and sales of basic and derivative chemical, and other chemical products. The company was founded in 1999 and is headquartered in Beijing, the People’s Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 12:47
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.