SEHK:857

Stock Analysis Report

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Market Cap

HK$1.1t

Last Updated

2021/06/22 16:23 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Good value with proven track record.


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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 857's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

857

-0.9%

HK Oil and Gas

-1.0%

HK Market


1 Year Return

36.1%

857

28.2%

HK Oil and Gas

20.1%

HK Market

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

Return vs Market: 857 exceeded the Hong Kong Market which returned 20.1% over the past year.


Shareholder returns

857IndustryMarket
7 Day0.6%-0.9%-1.0%
30 Day15.3%6.0%-1.0%
90 Day30.7%16.8%1.2%
1 Year46.3%36.1%35.3%28.2%24.2%20.1%
3 Year-25.7%-36.7%-16.7%-30.9%12.6%0.4%
5 Year-14.5%-30.1%9.6%-15.7%57.3%30.2%

Long-Term 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?

48.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 857 (HK$3.62) is trading below our estimate of fair value (HK$7.03)

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 (8.8x) compared to the Hong Kong Oil and Gas industry average (7.3x).

PE vs Market: 857 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: 857 is poor value based on its PEG Ratio (2.7x)


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 (0.8x).


Future Growth

How is PetroChina forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 857's forecast earnings growth (3.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 857's earnings (3.3% per year) are forecast to grow slower than the Hong Kong market (19.4% per year).

High Growth Earnings: 857's earnings are forecast to grow, but not significantly.

Revenue vs Market: 857's revenue (5.2% per year) is forecast to grow slower than the Hong Kong market (12.7% per year).

High Growth Revenue: 857's revenue (5.2% 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 (4.9%).


Past Performance

How has PetroChina performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 857 has a large one-off gain of CN¥45.5B impacting its March 31 2021 financial results.

Growing Profit Margin: 857's current net profit margins (3.2%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 857's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: 857's earnings growth over the past year (227.9%) exceeds its 5-year average (14% per year).

Earnings vs Industry: 857 earnings growth over the past year (227.9%) exceeded the Oil and Gas industry -3%.


Return on Equity

High ROE: 857's Return on Equity (5.6%) is considered low.


Financial Health

How is PetroChina's financial position?


Financial Position Analysis

Short Term Liabilities: 857's short term assets (CN¥547.5B) do not cover its short term liabilities (CN¥571.1B).

Long Term Liabilities: 857's short term assets (CN¥547.5B) do not cover its long term liabilities (CN¥560.5B).


Debt to Equity History and Analysis

Debt Level: 857's debt to equity ratio (29.8%) is considered satisfactory.

Reducing Debt: 857's debt to equity ratio has reduced from 42.2% to 29.8% over the past 5 years.

Debt Coverage: 857's debt is well covered by operating cash flow (80.5%).

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


Balance Sheet


Dividend

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

5.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 857's dividend (5.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.88%).

High Dividend: 857's dividend (5.8%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.06%).


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 reasonable payout ratio (50.9%), 857's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 857's dividends in 3 years are forecast to be covered by earnings (51.2% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Yongzhang Huang (54 yo)

0.25

Tenure

Mr. Huang Yongzhang has been President and Executive Director at PetroChina Company Limited since March 25, 2021. He served as Non-Executive Director at PetroChina Company Limited since September 28, 2020 ...


Leadership Team

Experienced Management: 857's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: 857's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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$1.122t
  • Shares outstanding: 183.02b
  • Website: https://www.petrochina.com.cn

Number of Employees


Location

  • PetroChina Company Limited
  • 9 Dongzhimen North Street
  • Dongcheng District
  • Beijing
  • 100007
  • China

Listings


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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/22 16:23
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.