Affected by the slump of tape yesterday, CNPC’s A share fell 2.4%, closed at CNY11.41. Coincidentally, May 25, 2009, with the total market capitalization over US oil company Exxon Mobil, China has become the world's largest oil and energy companies in the same price.

However, time has changed and the good old days are gone. Currently, China National Petroleum Corporation (CNPC)’s total value is short of Exxon Mobil about billion. Following yesterday CNPC's A share and H-share’s calculation, CNPC's A share continues to rise 20 percent, its total market capitalization will exceed Exxon Mobil in the third time.

Value of assessment

CNPS’s A share earnings ratio is the highest in global peers

From the beginning of last year to yesterday, the biggest two heavyweight stocks: CNPC's A share rose about 48 percent, in the same period CNPC's H share rose only 2.5%.

According to report, because the real estate and financial products are less attractive, the investors who are seeking returns now push up China's stock market. Meanwhile, CNPC's total market value (including the shares listed in Hong Kong) is rapidly expanding, reaching $ 313 billion, gradually approaching ExxonMobil’s $ 379 billion.

The media points that, in 2015, CNPC’s A share’s prospective p/e ratio will reach 24.9 times, which is one of the highest valuations global oil companies. According to Fact Set data, it is more reasonable that prospective p/e ratio of CNPC's H share is 15.2 times. From last summer, CNPC's listed share in Hong Kong fell 13 percent, roughly equal with Exxon Mobil shares’ drop. Since last summer, oil price had fallen by more than half, hitting most of the oil producers. Exxon Mobil's share price had fallen 11 percent since last summer. Its current prospective p/e ratio is 21.2 times.

Ranking

Twice be named of the world’s first market value

After A share appearing on the market, CNPC has won the world's first for twice time.

On November 5, 2007, CNPC's A-share was listed, with the opening price of 48.60 yuan, compared with issue price of 16.70 yuan, it boomed 191.02%. Its market value reached up to 7.86 trillion yuan. A and H share’s total market capitalization reached up to 8.25 trillion yuan, exceeded Exxon Mobil and become the world's first market company. However, the first market capitalization of CNPC has caught many investors, and the recourse is within the foreseeable future.

When the tape is closed on May 25, 2009, CNPC was close at 11.41 yuan, its market value exceeded Exxon Mobil in the second time and become the world's most valuable company. At that day, CNPC's market capitalization is $ 336.4 billion, better than the 5.9 billion on May 22’s close of Exxon Mobil. At that time, the economic stimulus plan was produced, A share rose, which created the conditions for CNPC's share rising.

Performance

The first three quarters of last year earned 353 million yuan daily

From last year, crude oil prices began to slump, which made oil companies generally have a difficult time.

According to America's largest oil company Exxon Mobil February 2 released financial report, affected by the fall in oil prices, the company's total revenue for fiscal year 2014 and other income was $ 411.94 billion, which is lower than fiscal year 2013's $ 438.28 billion, over the same period $ 32.6 billion net profit reduced to $ 32.5 billion. Being negatively affected by the sharp decline in international crude oil prices, total operating income of the fourth quarter of last year and other revenues added up to $ 87.28 billion, far below the $ 110.86 billion over the same period of fiscal year 2013, $ 8.4 billion net profit in fiscal year 2013 fell to $ 6.6 billion in the same period, the decrease was up to 21%.

In early January of this year, CNPC announced that the Group General Manager Liao Yongyuan affirmed the 2014's production and operation, and said the company has achieved compliance with anticipation, better than expected, better than the company's operating performance. Referring to CNPC’s third quarter report card, although in the second half of last year, international crude oil prices plummeted, CNPC earnings growth went cold, but it remains 0.8% on growth, while its competitors CPCC is down 0.96%. At the same time, reducing growth rate did not affect CNPC’s earning ability, in the first three quarters CNPC realized earning net profit of 96 billion yuan, 353 million yuan daily. Among them, the exploration and production segment realized operating profit of 145.954 billion yuan. Meanwhile, a number of agencies gave CNPC the overweight rating. Agencies believe that the slump of oil prices will affect the profit, but the CNPC, as China's largest supplier of natural gas, occupies more than 70% of the national supply, is the main beneficiary of the domestic gas price’s increasing.

Pushing Hands

May be "national team" to activate the market

CNPC's A share rose rapidly, it couldn’t rule out the national team’s strong hand in the behind.

With oil prices falling down, CNPC's H share sharply drops all the way from August last year. According to a research institute’s estimation, oil prices rose for every one US dollar, CNPC's performance increased 0.02 yuan. From a fundamental perspective, oil prices is not conducive to the business of CNPC, therefore, A share’s continuously rising is contradictory with the fundamentals. Under the background of international oil prices plummeted, worldwide oil shares are all falling down. Only CNPC's A shares speed up with momentum. Over a period of time, CNPC's A shares and H shares appeared about 30% of departure.

Magic key

Reelected as the “subsidy King” for ages

Subsidy becomes a major artifact to boost CNPC performance.

The first half year of 2014, CNPC ranked the top position with 5.174 billion yuan of subsidy, which is closed to the sum of the remaining nine members with 5.554 billion yuan.

But subsidies do not fully equal to performance. In the 2014 semi-annual report, CNPC announced that the first half year of 2014 they received a total of 5.174 billion yuan from the government subsidies, but included the loss of 1.421 billion yuan of government subsidies in the first half year. That is to say, only 1.421 billion yuan is included in the net profit of CNPC in the first half year of 2014, so the first half year of the company's income, which comes from the government subsidies subject to 1.421 billion yuan.

According to Beijing youth daily reporter, in the ranking of subsidies by the government, CNPC got first subsidies consecutive years. From 2011 to 2014, the CNPC got subsidies were 6.734 billion, 9.406 billion, 10.347 billion and 5.174 billion respectively.

According to statistics, nearly a decade “CNPC and SINOPEC” received government subsidies of 125.883 billion RMB, among them the CNPC got 48.438 billion RMB susidies.

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