PetroChina (SEHK:857) Valuation Check After 2025 Results And Dividend Proposal

Dividend proposal and earnings set the tone for PetroChina shares

PetroChina (SEHK:857) has put fresh numbers and cash returns in front of investors, pairing its full year 2025 results with a proposed final ordinary dividend of RMB 0.25 per share.

The earnings release confirmed sales of CN¥2,864,469 million and net income of CN¥157,318 million for 2025. The dividend proposal, which is subject to shareholder approval, also provides investors with clear dates for the ex dividend, record and payment.

See our latest analysis for PetroChina.

The earnings and dividend news come after a strong run in the shares, with the latest price at HK$10.77 and a 90 day share price return of 26.41% alongside a 1 year total shareholder return of 83.18%. This points to firm momentum rather than a short term spike.

If PetroChina’s recent move has you thinking about where else the energy story could go, this might be a good moment to scan 93 nuclear energy infrastructure stocks

With the share price already up strongly and the stock trading only modestly below some analyst targets despite an earnings dip, the real question is whether PetroChina still sits at a discount or whether markets are already pricing in future growth.

Price-to-earnings of 11x: Is it justified?

On simple earnings terms, PetroChina trades on a P/E of 11x, which screens as good value compared with its own fair P/E estimate of 17.5x and several benchmarks.

The P/E ratio compares the current share price to earnings per share and is a quick way to see how much investors are paying for each unit of profit. For a large, diversified energy group like PetroChina, this is a commonly watched yardstick because earnings and cash generation sit at the core of the investment case.

Here, the market price implies a lower multiple than several reference points. The stock is described as trading at 70.5% below one internal fair value estimate, and its 11x P/E is flagged as good value relative to an estimated fair P/E of 17.5x that the market could move toward. That same 11x level is also assessed as attractive when set against both the Asian Oil and Gas industry average P/E of 14.4x and a peer average of 12.3x, which suggests investors currently pay less for PetroChina’s earnings than for those comparators.

Result: Price-to-earnings of 11x (UNDERVALUED).

Explore the SWS fair ratio for PetroChina

However, steady revenue and earnings growth of 0.36% and 2.51% sit alongside exposure to energy prices and policy shifts, which could quickly change sentiment.

Find out about the key risks to this PetroChina narrative.

Another way to look at PetroChina’s value

Alongside the 11x P/E, our DCF model points to a fair value of about HK$36.57 per share versus the current HK$10.77, which implies PetroChina is still priced at a steep discount. The key question is whether those future cash flow assumptions feel realistic to you or too optimistic.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PetroChina for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 248 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Given the mix of positives and concerns in the story so far, this is a good time to look through the numbers yourself and form your own view quickly using 2 key rewards and 1 important warning sign

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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