Morning Star: Raises fair value of CNOOC to HK$29 amid rising oil prices and downward revision of capital expenditure plan.

Morningstar released a research report stating that the fair value of CNOOC, a Chinese offshore oil company without a moat, has been raised from 25.5 Hong Kong dollars to 29 Hong Kong dollars, reflecting the recent strength in oil prices and a reduction in capital expenditure plans. Morningstar indicates that CNOOC's net profit for 2025 is expected to decrease by 11% year-on-year to 122.1 billion Chinese yuan. This is mainly due to a 7% increase in net production and a 2% decrease in comprehensive costs, offsetting the 13% decrease in average realized crude oil prices.