Also talk about CNOOC and China Shenhua

First of all, let me explain that I hold both CNOOC H and Shenhua H, and the amount is almost the same. Sometimes looking at them is like comparing Mercedes-Benz and BMW which is better. I think they are both so good that I can’t choose, so I have to buy half of them.

If there is no data, it is purely qualitative nonsense. Each item is scored one point to see who has the highest score.

1. In terms of product pricing, CNOOC is much better. Following international crude oil, it is still priced in US dollars. Shenhua is subject to long-term prices and electricity prices. CNOOC 1:0 Shenhua

2. In terms of product demand, all traditional energy sources are affected by new energy sources. On the whole, CNOOC is better, because the proportion of crude oil produced in China is very low. Even if the total demand is halved, it will be imported crude oil. CNOOC oil is still in short supply. In fact, Shenhua is not a big problem. Basically, the demand for thermal power must always be there, and there is no big problem.

CNOOC 2:0 Shenhua

3. In terms of reserves, CNOOC’s South China Sea oilfield is influenced by certain political factors. I am not an expert, so I don’t talk nonsense. Shenhua has several new coal mines. At present, there is no problem in 20 years. I will vote for Shenhua. CNOOC 2:1 Shenhua.

4. Cash flow, capital investment, there is no suspense in this, Shenhua has an absolute advantage. CNOOC 2:2 Shenhua

5. Performance volatility: CNOOC fluctuates greatly, while Shenhua is more stable. This is normal, and this is not a point, because some people like stability, and some people like big fluctuations, so it is better to be a band. My personal preference is stability, Shenhua scores. CNOOC 2:3 Shenhua

6. Dividends: At present, Shenhua wins, but CNOOC has the potential to catch up. Give Shenhua 1 point. CNOOC 2:4 Shenhua

7. Valuation: According to the current valuation, CNOOC is more cost-effective, plus 1 point. CNOOC 3:4 Shenhua

8. Major shareholder and management character: they are all very good. If they are tied, they will get one point each. CNOOC 4:5 Shenhua

9. The tax rate of Hong Kong Stock Connect: CNOOC 28% tax deduction, Shenhua 20% tax deduction, Shenhua gets 1 point, CNOOC 4:5 Shenhua

In comparison, in fact, as I said at the beginning, Mercedes-Benz may have better interiors and a good sense of luxury, BMW has a good engine and good handling, but they are all good cars. Shenhua and CNOOC are core assets with high dividends that I like. If you choose not to sit, then one person will be half.

@玉林子州@superludinggong @snowball creator center @today’s topic

$CNOOC(00883)$ $China Shenhua(01088)$

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