DBS: Raises the target price for PETROCHINA to HKD 8.8, with third-quarter results slightly exceeding expectations

DBS released a research report stating that PetroChina's third-quarter performance slightly exceeded expectations. Although oil prices fell by about 15% year-on-year, the company's net profit only declined by 3.9% year-on-year. The bank indicated that PetroChina's business model is resilient, making it a preferred stock in the industry. It reiterated a "Buy" rating, raising the target price from HKD 8.02 to HKD 8.8. The bank expects oil prices to stabilize at a healthy level of USD 65 per barrel, coupled with a recovery in downstream activities, which is likely to keep PetroChina's net profit stable and support its dividend payout, estimating a dividend yield of 6% over the next two years