PETROCHINA(601857) 光大证券·2024-04-30 03:02Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with current prices at 10.22 CNY and 7.30 HKD respectively [4]. Core Insights - The company's Q1 2024 performance shows steady growth, with total revenue reaching 812.2 billion CNY, a year-on-year increase of 11%, and a net profit attributable to shareholders of 45.7 billion CNY, up 4.7% year-on-year and 55% quarter-on-quarter [5][11]. - The integrated advantages of the company's full industry chain are becoming increasingly evident, enhancing resilience against cyclical fluctuations in the oil and gas sector [11][19]. Summary by Sections Financial Performance - In Q1 2024, the company achieved an operating profit of 43 billion CNY in its upstream business, a year-on-year increase of 4.8%. The refining business saw a profit of 8.1 billion CNY, down 4.2% year-on-year, while the sales segment reported a profit of 6.8 billion CNY, down 17.1% year-on-year [7][9][10]. - The company's natural gas sales business generated a profit of 12.3 billion CNY, reflecting a 21.5% year-on-year increase, driven by increased sales volume and improved cost management [8][11]. Production and Sales - The company continues to enhance its oil and gas exploration and production efforts, achieving an equivalent oil and gas production of 463.7 million barrels in Q1 2024, a 2.6% increase year-on-year. This includes crude oil production of 240 million barrels, up 1.4% year-on-year, and natural gas production of 1,345 billion cubic feet, up 3.9% year-on-year [8][9]. - The sales of natural gas reached 83.369 billion cubic meters, a 14.2% increase from the previous year, with domestic sales growing by 7.5% [8]. Market Position and Valuation - The company's valuation remains low compared to international oil and gas giants, with A-shares and H-shares trading at PB-MRQ ratios of 1.35 and 0.86 respectively, compared to an average of 1.70 for major international peers [10][11]. - The report emphasizes the long-term investment value of the company, particularly in light of its integrated operations and ongoing transformation efforts [11][19].