In a report released today, Patricia Yeung from DBS maintained a Hold rating on ENN Energy Holdings (XNGSF – Research Report), with a price target of HK$68.00.
Patricia Yeung’s rating is based on several factors that influence ENN Energy Holdings’ current market position and future prospects. The company, being one of the largest gas distributors in China, is experiencing slower-than-expected growth in gas volume, with a modest increase of 0.3% in the first quarter of fiscal year 2025. Despite this, the company maintains a strong position with a 6.1% market share in gas sales volume and has outlined a detailed decarbonization roadmap, which could open up new business opportunities.
Furthermore, while ENN Energy Holdings anticipates robust earnings growth from its integrated energy and value-added businesses, the overall gas sales volume growth is projected to remain at 2.3% for FY25. This is supported by the acquisition of new industrial customers and an expected increase in dollar margin due to lower procurement costs and improved efficiency. However, the economic challenges and potential for weaker-than-expected growth in both the economy and gas volume, alongside higher procurement costs, contribute to the Hold rating. The target price has been adjusted to HKD68.00, reflecting these considerations and the slower growth outlook.
According to TipRanks, Yeung is an analyst with an average return of -2.3% and a 48.78% success rate. Yeung covers the Utilities sector, focusing on stocks such as ENN Energy Holdings, Huaneng Power International, and China Resources Gas Group.