SEHK:857

Stock Analysis Report

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

Fundamentals

Adequate balance sheet with acceptable 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


Market Performance


7 Day Return

-1.7%

857

2.3%

HK Oil and Gas

3.3%

HK Market


1 Year Return

-31.4%

857

-25.1%

HK Oil and Gas

1.6%

HK Market

Return vs Industry: 857 underperformed the Hong Kong Oil and Gas industry which returned -25.1% over the past year.

Return vs Market: 857 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

857IndustryMarket
7 Day-1.7%2.3%3.3%
30 Day-4.2%-5.4%-0.009%
90 Day-5.4%-6.7%-5.1%
1 Year-28.3%-31.4%-20.8%-25.1%5.3%1.6%
3 Year-19.1%-26.7%-1.6%-15.6%16.1%4.4%
5 Year-51.5%-57.6%-28.4%-41.2%20.4%0.3%

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?

12.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 857 (HK$4.06) is trading above our estimate of fair value (HK$2.6)

Significantly Undervalued: 857 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 857 is poor value based on its PE Ratio (12.5x) compared to the Oil and Gas industry average (7x).

PE vs Market: 857 is poor value based on its PE Ratio (12.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 857 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 857 is good value based on its PB Ratio (0.5x) compared to the HK Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is PetroChina forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 857's forecast earnings growth (9.7% per year) is above the savings rate (2%).

Earnings vs Market: 857's earnings (9.7% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 857's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 857's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 857's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has PetroChina performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 857's earnings have declined by -25.3% per year over the past 5 years.

Accelerating Growth: 857's earnings growth over the past year (42.6%) exceeds its 5-year average (-25.3% per year).

Earnings vs Industry: 857 earnings growth over the past year (42.6%) exceeded the Oil and Gas industry 12.6%.


Return on Equity

High ROE: 857's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: 857's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: 857 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PetroChina's financial position?


Financial Position Analysis

Short Term Liabilities: 857's short term assets (CN¥481.4B) do not cover its short term liabilities (CN¥602.3B)

Long Term Liabilities: 857's short term assets (481.4B) do not cover its long term liabilities (609.3B)


Debt to Equity History and Analysis

Debt Level: 857's debt to equity ratio (31.2%) is considered satisfactory

Reducing Debt: 857's debt to equity ratio has reduced from 40.8% to 31.2% over the past 5 years.

Debt Coverage: 857's debt is well covered by operating cash flow (76%).

Interest Coverage: 857's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: 857 has a high level of physical assets or inventory.

Debt Coverage by Assets: 857's debt is covered by short term assets (assets are 1.082520x debt).


Next Steps

Dividend

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

4.58%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.3%markettop25%6.3%industryaverage6.1%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 857's dividend (4.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 857's dividend (4.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 (52.9%), 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 (52.9% payout ratio).


Next Steps

Management

What is the CEO of PetroChina's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Qijun Hou (52yo)

0.6yrs

Tenure

CN¥888,000

Compensation

Mr. Qijun Hou has been the President of PetroChina Company Limited since March 21, 2019. He was Vice President of PetroChina Company Limited since June 8, 2017 until March 21, 2019. Mr. Hou has been Vice P ...


CEO Compensation Analysis

Compensation vs. Market: Qijun has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Qijun's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: 857's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 857's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Jigang Yang (56yo)

    Vice President

    • Tenure: 1.8yrs
  • Longde Sun (56yo)

    Vice President

    • Tenure: 12.3yrs
  • Xia Wei

    Chairman of Singapore Petroleum Company and Managing Director of PetroChina - Singapore

    • Tenure: 0yrs
  • Zhongcai Wang (59yo)

    Vice President

    • Tenure: 1.8yrs
  • Enlai Wu (59yo)

    Secretary to the Board of Directors

    • Tenure: 2.7yrs
  • Luguang Li (57yo)

    Vice President

    • Tenure: 1.3yrs
    • Compensation: CN¥529.00k
  • Jinghui Tian (57yo)

    Vice President

    • Tenure: 3.9yrs
  • Shouping Chai (57yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Qijun Hou (52yo)

    President & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥888.00k
  • Xiao Ling (55yo)

    Vice President

    • Tenure: 1.8yrs

Board Members

  • Yilin Wang (63yo)

    Chairman of the Board

    • Tenure: 4.3yrs
  • Wenrong Xu (58yo)

    Chairman of Supervisory Committee

    • Tenure: 2.3yrs
  • Hongbin Liu (56yo)

    Non-Executive Director

    • Tenure: 5.4yrs
  • Wei Zhang (51yo)

    Vice Chairman

    • Tenure: 0.3yrs
  • Xia Wei

    Chairman of Singapore Petroleum Company and Managing Director of PetroChina - Singapore

    • Tenure: 0yrs
  • Elsie Leung (80yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥334.00k
  • Biyi Zhang (65yo)

    Independent Non Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥399.00k
  • Boqiang Lin (61yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥365.00k
  • Yuezhen Liu (57yo)

    Non-Executive Director

    • Tenure: 5.4yrs
  • Qijun Hou (52yo)

    President & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥888.00k

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: 1988
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: HK$1.183t
  • 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
  • 100007
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
K3ODSGX (Singapore Exchange)SPON ADS EACH REPR 100 ORD SHSSGUSDApr 2000
PTRNYSE (New York Stock Exchange)SPON ADS EACH REPR 100 ORD SHSUSUSDApr 2000
PTR NBMV (Bolsa Mexicana de Valores)SPON ADS EACH REPR 100 ORD SHSMXMXNApr 2000
PC6ADB (Deutsche Boerse AG)SPON ADS EACH REPR 100 ORD SHSDEEURApr 2000
0A2RLSE (London Stock Exchange)SPON ADS EACH REPR 100 ORD SHSGBUSDApr 2000
PCCY.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDApr 2000
PC6DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURApr 2000
857SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDApr 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.