HK Stock Market Move | PetroChina (00857) rises over 3%; repeated Middle East tensions keep oil prices elevated, and the company has strong valuation appeal.

PetroChina (00857) rose over 3%, up 3.2% as of press time, at HK$10.17, with a turnover of HK$841 million. On the news front, tensions in the Middle East remain elevated, with Brent crude hovering at a high of US$105. The Houthi armed group claimed that Saudi Arabia launched 119 attacks within 24 hours, and flights over Riyadh have nearly disappeared. It is worth noting that, benefiting from rising oil prices, PetroChina's net profit in the first half of the year increased by 22% year-on-year. Second-quarter net profit rose 15% quarter-on-quarter. Huaan believes that the company values shareholder returns and continues to increase its dividend payout ratio and dividend yield. The bank compared the 2025 earnings per share and current static PE of key oil and gas peers in the industry horizontally, and the current valuation of PetroChina (A/H) remains at a low level, especially the H-shares, which have strong valuation appeal.