ENN Energy Holdings (2688) AI Stock Analysis

• Market Cap: $73.53B
• Dividend Yield: 4.67%
• Average Volume (3M): 2.92M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.99
• Revenue Growth: -5.28%
• EPS Growth: -13.15%
• Country: HK
• Employees: 35,197
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Gas
• EPS (TTM): 3.33
• Shares Outstanding: 1,131,252,300
• 10 Day Avg. Volume: 3,083,374
• 30 Day Avg. Volume: 2,921,368
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 6.12
• Enterprise Value/Ebitda: 7.63
• 1Y Price Target: $69.72
• Price Target Upside: 8.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: HK$74.00 ▲(15.09% Upside)

ENN Energy Holdings scores well due to its strong financial performance and attractive valuation, with robust technical indicators indicating positive market momentum. The company shows resilience with a stable financial position despite some margin pressures and rising liabilities.

Positive Factors

Decarbonisation Strategy

The company is the first gas distributor to disclose a detailed decarbonisation roadmap, paving the way for business opportunities.

Dividend Yield

ENN Energy Holdings offers an attractive dividend yield of 5.5% with expected growth in dividend per share by 4%.

Earnings Growth

Robust earnings growth from integrated energy and value-added businesses due to strong drive for carbon reduction and better energy efficiency.

Negative Factors

Earnings Estimates

The earnings estimates for FY25/26 have been trimmed by 4%-9% due to more conservative assumptions for gas sales volume growth.

Economic Challenges

Slower growth outlook amid economic challenges and higher procurement cost could lead to disappointment in earnings growth.

Market Reflection

Positives are considered to be already reflected in the price, leading to a downgrade to HOLD despite the target price increase to HKD70.

ENN Energy Holdings Business Overview & Revenue Model

Company Description

ENN Energy Holdings (2688) is a leading clean energy distributor in China, primarily engaged in the sale and distribution of piped natural gas. The company provides integrated energy solutions, including natural gas supply, energy infrastructure construction, and value-added energy services. ENN Energy serves a diverse clientele, including residential, commercial, and industrial customers, facilitating the transition to cleaner energy sources.

How the Company Makes Money

ENN Energy Holdings generates revenue through several key streams. The primary source of income is the sale and distribution of piped natural gas to residential, commercial, and industrial customers. The company also earns from the construction and operation of energy infrastructure, such as natural gas pipelines and storage facilities. Additionally, ENN Energy offers value-added services like energy management solutions and consultancy, which contribute to its revenue. Strategic partnerships with local governments and enterprises enhance its market reach and facilitate infrastructure expansion, further supporting its revenue growth.

ENN Energy Holdings Financial Statement Overview

Summary

ENN Energy Holdings shows a solid financial position with strong profitability and efficient cash flow management. However, some pressures on profit margins and rising liabilities warrant attention.

Income Statement

ENN Energy Holdings exhibits a stable financial performance with a focus on profitability. Gross Profit Margin has shown slight fluctuations but remains strong, indicating efficient cost management. The Net Profit Margin is healthy, though it shows a slight decline in recent years. Revenue Growth Rate has been moderate, reflecting stable business operations in a regulated industry. The EBIT and EBITDA Margins support the company's strong operational efficiency, although there is a mild decline in EBIT Margin, which suggests some margin pressure.

Balance Sheet

The company maintains a balanced financial structure with a moderate Debt-to-Equity Ratio, reflecting an acceptable level of leverage. Return on Equity has shown some variability but remains satisfactory, indicating decent returns on shareholder investments. The Equity Ratio is stable, suggesting a strong capital foundation and prudent asset management, although the rising Total Liabilities should be monitored closely to ensure financial stability.

Cash Flow

ENN Energy Holdings demonstrates strong cash flow generation capabilities, as evidenced by a consistent Operating Cash Flow to Net Income Ratio. Free Cash Flow has grown, supporting the company's ability to invest and return value to shareholders. The Free Cash Flow to Net Income Ratio is robust, highlighting effective cash management. However, fluctuations in Investing and Financing Cash Flows suggest potential volatility in cash usage and capital structure adjustments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.85B	113.86B	110.05B	93.11B	71.62B
Gross Profit	13.40B	14.34B	15.76B	14.06B	12.33B
EBITDA	10.75B	11.56B	12.70B	11.29B	10.03B
Net Income	5.99B	6.82B	5.87B	7.75B	6.28B
Balance Sheet
Total Assets	103.22B	103.13B	102.36B	99.99B	90.04B
Cash, Cash Equivalents and Short-Term Investments	7.69B	9.79B	8.08B	8.84B	8.70B
Total Debt	20.39B	22.73B	20.53B	20.58B	20.17B
Total Liabilities	52.14B	54.87B	56.80B	57.84B	53.87B
Stockholders Equity	45.10B	42.66B	39.04B	35.78B	30.56B
Cash Flow
Free Cash Flow	3.56B	3.12B	3.86B	4.21B	4.18B
Operating Cash Flow	10.29B	9.61B	10.10B	10.47B	9.70B
Investing Cash Flow	-4.44B	-4.85B	-5.73B	-6.77B	-6.49B
Financing Cash Flow	-7.86B	-3.14B	-5.02B	-3.64B	-1.90B

ENN Energy Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 64.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2688, the sentiment is Neutral. The current price of 64.3 is below the 20-day moving average (MA) of 64.80, above the 50-day MA of 64.18, and above the 200-day MA of 57.15, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 63.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2688.

ENN Energy Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2688	77 Outperform	$73.53B	11.23	13.65%	4.67%	-5.28%	-13.15%
1083	76 Outperform	$15.69B	9.18	6.98%	4.40%	7.42%	-2.02%
0384	71 Outperform	$45.27B	13.76	6.04%	5.97%	-2.64%	1.97%
Sector *	65 Neutral	€15.46B	-5.96	13.10%	3.15%	-10.76%	32.28%
0003	65 Neutral	$135.47B	23.72	9.72%	4.91%	-2.63%	-5.90%
1193	59 Neutral	$45.32B	11.09	9.94%	4.75%	1.39%	-21.74%
3633	50 Neutral	HK$10.36B	71.81	1.91%	0.53%	-1.26%	-40.09%

ENN Energy Holdings Corporate Events

ENN Energy Holdings Announces Privatization Proposal and Listing Withdrawal

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement and a proposed withdrawal of its listing. The progress update indicates that while some pre-conditions have been met, others are still pending, including approvals from relevant authorities. This move could significantly impact the company’s market positioning and stakeholders, as it involves delisting from the Hong Kong Stock Exchange.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Updates on Securities Amid Privatization Proposal

ENN Energy Holdings Limited announced an update on the number of relevant securities issued, following the exercise of 12,400 share options under its 2012 Share Option Scheme. This update is part of a broader proposal by ENN Natural Gas Co., Ltd. to privatize ENN Energy through a scheme of arrangement, which remains subject to pre-conditions and conditions. Stakeholders are advised to exercise caution as the proposal may or may not be implemented.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Holdings Proposes Privatization and H Share Listing

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement under the Companies Act, alongside a proposed withdrawal of its listing. Additionally, ENN Natural Gas Co., Ltd. has submitted an application to the Hong Kong Stock Exchange for the listing of its H shares. This move is subject to various pre-conditions, including approval from the Hong Kong Stock Exchange’s Listing Committee. The announcement indicates potential changes in the company’s market presence and implications for shareholders and investors, as the application proof is still in draft form and subject to change.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Updates on Securities Amid Privatization Proposal

ENN Energy Holdings Limited has announced updates regarding its securities in light of a proposal to privatize the company through a scheme of arrangement. The announcement details the lapse of certain share options and awards, alongside the issuance of new shares, affecting the total securities in circulation. Stakeholders are advised to exercise caution as the proposal and related offers are subject to pre-conditions and may not be implemented.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Holdings Moves Forward with Privatization Proposal

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement, which includes the proposed withdrawal of its listing. The proposal has received approval from at least two-thirds of the ENN-NG independent shareholders, fulfilling a key pre-condition. However, several other pre-conditions, including regulatory approvals and filings, remain outstanding. The company is actively working towards meeting these requirements, which could significantly impact its market positioning and operations.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$80.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Updates on Share Option Exercise Amid Privatization Proposal

ENN Energy Holdings Limited announced an update regarding its securities following the exercise of 100 share options under its 2012 Share Option Scheme, resulting in the issuance of 100 new shares. This update is part of a broader proposal by Xinneng (Hong Kong) Energy Investment Limited to privatize ENN Energy through a scheme of arrangement, which is subject to certain pre-conditions and conditions. Stakeholders are advised to exercise caution as the proposal’s implementation is not guaranteed.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$80.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Holdings Announces Successful AGM Resolutions

ENN Energy Holdings Limited announced the successful passing of all resolutions at its Annual General Meeting held on 23 May 2025. Key resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of several directors, and the re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. The approval of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives in the energy sector.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$76.10 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.

ENN Energy Announces Share Option Exercise Amid Privatization Proposal

ENN Energy Holdings Limited has announced an update regarding the exercise of share options under its 2012 Share Option Scheme, resulting in the issuance of 500 new shares. This update is part of a broader proposal by ENN Natural Gas Co., Ltd. to privatize ENN Energy through a scheme of arrangement. Stakeholders are advised to exercise caution as the proposal is subject to certain pre-conditions and conditions that may affect its implementation.

The most recent analyst rating on (HK:2688) stock is a Buy with a HK$80.00 price target. To see the full list of analyst forecasts on ENN Energy Holdings stock, see the HK:2688 Stock Forecast page.