Since it hit a record high on the first day of trading in the Shanghai stock market ten years ago, the market value of this China state-owned energy enterprise has lost about 800 billion US dollars-such a high amount that it can buy any Italian listed company. If the $ 100 bill is laid on the ground, it can circle the earth by 3 1 circle.
In constant dollars, this is the biggest loss of shareholders' wealth in the history of the world. Things may only get worse. According to the average forecast of analysts surveyed by Bloomberg, in the next 12 months, China Petroleum's A shares traded in Shanghai will further fall 16% to an unprecedented low.
In the past ten years, this stock has undergone some major economic policy adjustments in China, including the government's efforts to get rid of the commodity-intensive development model and curb speculation in this stock. It is this hype that made China Petroleum the first company in the world with a market value of 1 trillion dollars in 2007.
Given the 44% drop in oil prices in the past decade and China's plan to promote the development of electric vehicles, it is not difficult to understand why analysts are still bearish on this stock. Even if the share price of China Petroleum is as high as 36 times the estimated profit in1February and 53% higher than the global peers, it will not help.
"China Petroleum will be in a difficult situation in the future," said Toshihiko Takamoto, fund manager of Singapore-based Asset Management One. "Why does someone buy this stock with a price-earnings ratio of more than 30 times?" The company manages about $800 million in assets in Asia.