Morgan Stanley: PETROCHINA (00857) Q3 core EPS beat expectations; maintains "Overweight" rating and HK$13.25 target price

Morgan Stanley issued a research report maintaining its "Overweight" rating and HK$13.25 target price for PETROCHINA (00857). Supported by year-on-year increases in energy prices, the company's third-quarter results were solid, with earnings per share up 23% year-on-year and down 7% quarter-on-quarter, in line with the bank's expectations; core earnings per share were RMB0.29, 3% above the bank's expectation. The bank noted that PETROCHINA's refining segment EBIT grew 92% quarter-on-quarter, mainly driven by higher exports and a recovery in the domestic market. The natural gas segment EBIT, driven by higher sales volumes and average prices, rose 76% quarter-on-quarter, outperforming the bank's expectation, but was still down 27% year-on-year.