PetroChina stock closed at HK$10.24 on 29 October, only modestly higher over the past month, even as fresh Q3 2026 figures landed. The market reaction looked muted. The headline was not. Quarterly net income reached C¥51,840m with basic earnings per share at C¥0.28 and trailing 12 month earnings growth running at 16%.
Short term traders may focus on the day to day move. Long term investors are more likely to notice a business that has lifted its net profit margin to 6.1% over the past year while the valuation still prices in forecast earnings and revenue declines.
Like PetroChina's higher net profit margin but cautious about forecasts suggesting softer earnings and revenue ahead? Use our 191 high quality undervalued stocks to filter for companies that combine solid profitability with a more positive outlook.
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025):C¥793,573m vs. C¥719,042m (up roughly 10%)
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Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025):C¥51,840m vs. C¥42,648m (up about 22%)
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Basic EPS (Q3 2026 vs Q3 2025):C¥0.28 vs. C¥0.23 (higher year on year)
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Net Profit Margin (Trailing 12 Months vs Prior Year):6.1% vs. 5.6% (moderate improvement in profitability)
Earnings and margins rose even as forecasts point lower. Ask Charlie what makes PetroChina look this cheap now .
PetroChina's profit surge backs energy security story
For the bullish "energy security champion" angle, PetroChina's latest figures point in the same direction. Revenue in Q3 2026 of C¥793,573m and net income of C¥51,840m both moved higher year on year, while trailing net profit margin improved to 6.1%. Record Q3 earnings and a strong 1H 2026 came alongside higher realized oil prices, better refining and chemicals performance, and growing gas output. Reduced capex over the first nine months, while still funding new discoveries and project developments, supports the idea of a large integrated operator running with tighter financial discipline.
Risks remain as policy, trading and capex shape PetroChina
Bearish arguments around policy influence and earnings volatility still have hooks, even if near term numbers look healthy. Record or near record profits are heavily linked to elevated crude prices and war driven trading gains, which could reverse quickly. Policy instructions from Beijing to accelerate domestic production tie PetroChina more tightly to national supply goals. That can constrain flexibility on spending decisions. LNG and gas projects such as LNG Canada Phase 2 and Arrow Energy add long term commitments that may pressure free cash generation if commodity conditions weaken from current levels.
After record level profits tied to elevated crude pricing and policy driven capex, you might wonder if PetroChina's earnings power is more fragile than it looks. Review the independent risk analysis for PetroChina which shows 2 important warning signs
Hunt For Mispriced Earnings Power
PetroChina shows how a strong quarter can still leave investors hesitant. The real opportunity is finding stocks that could be undervalued before the market corrects them.
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Company 1 - 32% below our estimate - builds crop protection, seeds and specialty chemicals into a digital farming platform integrated into operational decisions.
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Company 2 - 44% below our estimate - shifts relationship-focused banking onto shared technology platforms that reduce costs and guide clients toward fee-based services.
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Company 3 - 40% below our estimate - turns a niche beverage into branded and private label offerings that retailers expand across more shelf space.
Those are three of them. See the full list of 191 companies trading below our fair value estimates →
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.
Companies discussed in this article include 0857.HK .
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