Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>BOCI Highlights Factors Propelling CN Oil Sector to Keep Outperforming Mkt in 2H24; Top Pick CNOOC
Recommend 10 Positive 17 Negative 10 |
||||
|
||||
|
BOCI forecasted in a reprot that China's oil sector should continue to outperform the market in 2H. The broker expected oil prices to remain strong or even rise in 2H24 as the global oil supply shortage reaches 1.4 million barrels per day. However, the broker forecasted that the global oil market will be oversupplied by 1.1 million barrels per day next year, although there are a number of fluctuating factors that may affect this forecast, including US oil production, the outcome of the US election and geopolitical tensions in the Middle East. The broker also revised its forecast for Brent crude oil prices this year from US$81 per barrel to US$84 per barrel. The broker said while China's oil sector giants have significantly outran the market so far this year, their shares are still cheaper than their global peers. Combined with the attractive yields they offer, they should be attractive enough for mainland investors looking for high dividend-paying stocks. BOCI highlighted that CNOOC (00883.HK) is the only one of China's oil sector giants that has been able to deliver strong production growth, with the lowest production costs and longest life of crude oil reserves. CNOOC's compound annual growth rate for FY24 to FY26 ranged from 6.1% to 7%, with a yield of 6.6% to 6.7% over the same period. Therefore, the broker rated CNOOC Buy with a target price of HK$26.39, and identified the stock as its top pick in China's oil sector. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
