TX Investment Consulting presents short report on PetroChina:

As shown by latest statistics, rally of quantity and price in petrochemical industry is quite obvious. Being domestic bellwether in petroleum industry, the company takes its resource advantages in upstream market and benefits from recovery in downstream market; profit is expected to see evident upturn in Q2 and Q3 2009.

We predict the company's 2009-2010E EPS to be Rmb0.57 and Rmb0.73 respectively, representing dynamic P/E ratio at 25x and 19x based on closing price of Rmb14.17 on June 9, 2009. Its resource edges will be more remarkable in gradual economic recovery, and elements like natural gas price adjustment and crude price surge will stimulate the share price higher, thus we upgrade the investment rating to "Overweight".

Potential risks: Crude oil price surges beyond expectation; product oil price adjustment seriously lags.