not vested
<Research Report>M Stanley Expects PETROCHINA Could Benefit from Oil & Gas Prices Reform; Kept Overweight
Morgan Stanley, in its report, said oil price recovery and oil and gas price reform in China should unleash the hidden value of PETROCHINA (00857.HK).
With net debt narrowed by about RMB90 billion year-to-date, the broker reiterated Overweight with target price of $6.21.
The broker said in 3Q17, the company's net profit was RMB4.7 billion, but still at a low level compared to the past.
The profit from refinery and chemical segment outperformed the upstream business.
Morgan Stanley said the EBIT of PETROCHINA remains stable, so the broker believed that the company can raise the price level amid gas supply shortage.
If the gas price reform continues with more market-oriented pricing, Morgan Stanley believed PETROCHINA will become the largest beneficiary.
Source: AAStocks Financial News