On November 5, 2007, hundreds of millions of shareholders expected PetroChina to return to A-share market, full of many expectations and dreams of becoming rich. On the first day of listing, the issue price of 16.7 yuan was directly 48.6 yuan, and then rose 2 cents 48.62 yuan, which became the highest price in the history of PetroChina. Since then, it has been falling for a long time.
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On November 1, although PetroChina A shares closed slightly higher by 0.17% to close at 5.89 yuan, they set a record low of 5.84 yuan in the session. Even according to the closing price of the day, the first days high (former reversion) since PetroChinas listing has fallen as much as 87.27%. The market value of PetroChina has evaporated 7.31 trillion yuan, equivalent to 4.9 Maotai.
When PetroChina A shares went public, the weight of the Shanghai composite index was more than 23%, and even there was a saying that for every gross increase of PetroChina, the Shanghai Composite Index rose by about 6 points, which shows PetroChinas position in that year. On the first day, a large number of shareholders rushed into PetroChina with a turnover of 70 billion yuan.
However, from November 2007 to November 2019, in the past 12 years, PetroChinas share price has not changed its downward trend, and every time it attracts market attention, it is always the share price has hit a new low.
In the first three quarters of this year, PetroChinas operating revenue was 1.81 trillion yuan, up 5.1% year-on-year; net profit was 37.28 billion yuan, down 23.4% year-on-year; although the net profit fluctuated from high to low over the years, and the net profit rarely reached the level of 134.574 billion yuan in 2007, PetroChina still made money every year. In the past 12 years, the stock price fell, and the valuation also plummeted.
The collapse of stock prices, PetroChinas valuation, especially the price to book ratio (PB) valuation, has been reduced to a very low level. There is also a constant talk about the arrival of Buffetts buying point. At the time of the low price of PetroChina, Warren Buffett, the God of stocks, made a big sale, and then sold in the bull market in 2007.
On November 1, the closing price of PetroChinas A-share Pb was 0.88 times, and the valuation of H-share Pb was 0.51 times; Buffetts Berkshire company bought PetroChinas H-share in April 2003, when the ratio of PetroChinas market value to the discounted value of oil and gas assets was only 0.49.
At the beginning of September this year, Everbright Securities research paper put forward Buffetts point of purchase reappearance, saying that PetroChinas valuation is at the bottom of history, and then followed by successive research papers. According to the research report, PetroChina, as the industry leader, has a relatively stable market share and a long-term good market share despite fierce competition between refining and refined oil products.
Source: editor in charge of China Fund News: Yang bin_nf4368