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<Research>JPM Raises PETROCHINA's TP to HKD10; Sichuan Shale Gas Project Appears Promising
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According to JPMorgan's research report, after analysts visited PETROCHINA (00857.HK)'s Southwest Oil & Gasfield, the broker was not only pleasantly surprised by the field's growth capacity in low-cost onshore natural gas production, but it was also more confident in PETROCHINA's ability to navigate five straight years of declining oil prices. JPMorgan believes PETROCHINA will benefit from the unconventional natural gas subsidy policy in the 15th Five-Year Plan, given that it has leveraged its leading exploration and development technology to scale up shale gas production in key areas of the Southwest. In addition, the Sichuan Basin project holds more than 80 trillion cubic meters of undeveloped natural gas reserves, while domestic natural gas sales in 2025 are expected to reach only 242 billion cubic meters. PETROCHINA controls about 80% of China's working gas storage capacity and plans to more than double the storage capacity in the southwest region by 2030, allowing it to benefit from the coming wave of lower spot liquefied natural gas prices. In JPMorgan's estimate, PETROCHINA will distribute a dividend of RMB0.48 per share for the entire year of 2025, marking the sixth consecutive year of dividend hikes. The broker raised its target price for PETROCHINA from HKD9 to HKD10, with an Overweight rating remaining in place. AAStocks Financial News |
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