Xiaomo: Raise the target price of CNPC shares (00857) to HK$10 to maintain the “gain” rating

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that it raised the target price of CNPC shares (00857) from HK$9 to HK$10, and raised A shares at the same time to maintain “increased holdings”. CNPC's dividend for fiscal year 2025 is expected to be 0.48 yuan per share, increasing for six consecutive years.

After a three-day inspection of CNPC's southwest oil and gas field, Motong was surprised to find that the company can achieve an increase in onshore natural gas production at a low cost, and is more confident that the company can successfully escape the impact of five consecutive years of falling oil prices. The southwest oil and gas field has always been the main driving force for CNPC's production growth, with a growth target of 5.3 billion cubic meters for the 2025 fiscal year accounting for 85% of the annual target of 6.2 billion cubic meters.

Motong also said that the company has more than 80 trillion cubic meters of undeveloped natural gas reserves in the Sichuan Basin, while domestic gas sales are expected to be 242 billion cubic meters in 2025. The company controls about 80% of China's natural gas storage capacity and plans to more than double its storage capacity in the southwest region by 2030 to take full advantage of the upcoming wave of “cheap spot liquefied natural gas.”