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ENN Energy Holdings Limited (HK:2688)
:2688

ENN Energy Holdings (2688) AI Stock Analysis

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HK

ENN Energy Holdings

(OTC:2688)

Rating:77Outperform
Price Target:
HK$74.00
▲(16.26%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 Roadmap
ENN is leading with a detailed decarbonisation roadmap, paving the way for business opportunities from China's decarbonisation journey.
Earnings Growth
Robust earnings growth is anticipated from integrated energy and value-added businesses, driven by national carbon reduction efforts and enhanced energy efficiency.
Gas Volume Growth
Gas volume growth is expected to be driven by new industrial customers and better efficiency, alongside an increase in dollar margin due to lower gas procurement costs.
Negative Factors
Earnings Estimate Revision
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 Sentiment
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 (2688) vs. iShares MSCI Hong Kong ETF (EWH)

ENN Energy Holdings Business Overview & Revenue Model

Company DescriptionENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructures; and integrated energy, and vehicle and ship refueling stations in the People's Republic of China. It operates through five segments: Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business. The company also sells and distributes piped gas, liquefied natural gas, and other multi-energy products; and provides other services in relation to energy supply. In addition, it is involved in the business of energy trading; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. As of December 31, 2021, the company served approximately 25 million residential customers and 200,000 commercial/industrial customers. The company was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. ENN Energy Holdings Limited was founded in 1992 and is headquartered in Langfang, China.
How the Company Makes MoneyENN Energy Holdings primarily generates revenue through the distribution and sale of natural gas to residential, commercial, and industrial customers. The company operates an extensive network of gas pipelines that facilitate the delivery of natural gas across different regions in China. Revenue is also derived from the construction and installation of gas pipeline infrastructure, which supports the expansion of its distribution network. Additionally, ENN Energy Holdings offers energy-related services, including energy management and consulting, which contribute to its earnings. The company benefits from strategic partnerships with local governments and other enterprises, which help in expanding its market presence and enhancing its service offerings.

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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue109.85B113.86B110.05B93.11B71.62B
Gross Profit13.40B14.34B15.76B14.06B12.33B
EBITDA10.75B11.56B12.70B11.29B10.03B
Net Income5.99B6.82B5.87B7.75B6.28B
Balance Sheet
Total Assets103.22B103.13B102.36B99.99B90.04B
Cash, Cash Equivalents and Short-Term Investments7.69B9.79B8.08B8.84B8.70B
Total Debt20.39B22.73B20.53B20.58B20.17B
Total Liabilities52.14B54.87B56.80B57.84B53.87B
Stockholders Equity45.10B42.66B39.04B35.78B30.56B
Cash Flow
Free Cash Flow3.56B3.12B3.86B4.21B4.18B
Operating Cash Flow10.29B9.61B10.10B10.47B9.70B
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
Positive
Last Price63.65
Price Trends
50DMA
61.92
Positive
100DMA
58.07
Positive
200DMA
54.88
Positive
Market Momentum
MACD
0.22
Positive
RSI
47.85
Neutral
STOCH
6.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2688, the sentiment is Positive. The current price of 63.65 is below the 20-day moving average (MA) of 63.96, above the 50-day MA of 61.92, and above the 200-day MA of 54.88, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 6.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2688.

ENN Energy Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$71.10B10.8613.65%7.46%-5.28%-13.15%
61
Neutral
C$4.81B-10.63-12.21%4.50%11.13%-68.91%
$5.09B12.096.04%4.12%
$5.79B12.169.94%0.81%
$15.83B21.639.72%0.88%
$1.75B8.346.93%37.48%
€1.21B65.811.91%0.49%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2688
ENN Energy Holdings
63.65
3.21
5.31%
CGHOF
China Gas Holdings
0.95
0.08
9.20%
CRGGF
China Resources Gas Group
2.81
-0.81
-22.38%
HOKCF
Hong Kong & China Gas Co
0.85
0.12
16.44%
TGASF
Towngas China Co
0.50
0.15
42.86%
DE:MJVC
Zhongyu Gas Holdings Limited
0.42
-0.12
-22.22%

ENN Energy Holdings Corporate Events

ENN Energy Updates on Securities Amid Privatization Proposal
Jun 17, 2025

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
Jun 16, 2025

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
Jun 4, 2025

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
May 28, 2025

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
May 27, 2025

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
May 23, 2025

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
May 14, 2025

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.

ENN Energy Holdings Proposes Privatization and Listing Withdrawal
Apr 30, 2025

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement, which includes a proposed withdrawal of its listing. The process is subject to fulfilling certain pre-conditions and obtaining court approval. Due to the complexity of these requirements, the deadline for dispatching the scheme document has been extended to December 1, 2025. This move could significantly impact the company’s market positioning and shareholder interests, as the proposal and share option offer may or may not be implemented depending on the satisfaction of these conditions.

ENN Energy Holdings Announces Privatization Proposal and Listing Withdrawal
Apr 25, 2025

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. The ENN-NG General Meeting is scheduled for May 28, 2025, where key resolutions will be voted on, although none of the pre-conditions have been satisfied yet. Stakeholders are advised to exercise caution as the proposal’s implementation is contingent upon these conditions being met.

ENN Energy Holdings Announces Privatization Proposal
Apr 25, 2025

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement under the Companies Act of the Cayman Islands. This move is part of a strategic initiative involving ENN Natural Gas Co., Ltd. and Xinneng (Hong Kong) Energy Investment Limited. The proposal’s progress includes the publication of various reports on the Shanghai Stock Exchange, detailing financial valuations and audit reports necessary for stakeholder consideration. The proposal is subject to approval by at least two-thirds of the voting rights of ENN-NG Independent Shareholders at the upcoming general meeting.

ENN Energy Holdings Reports Q1 2025 Operational Growth Amid Economic Opportunities
Apr 25, 2025

ENN Energy Holdings has reported its unaudited operational data for the first quarter of 2025, highlighting a 9.9% increase in integrated energy sales volume and a marginal 0.3% rise in retail gas sales volume. The company is capitalizing on China’s economic growth and energy transformation goals, focusing on expanding its natural gas business and integrated energy projects. Despite a decrease in newly-developed residential households and installed capacity for commercial and industrial customers, ENN Energy is committed to enhancing its competitive advantage through innovation and strategic implementation.

ENN Energy Holdings Proposes Privatization and Listing Withdrawal
Apr 17, 2025

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement, alongside a proposed withdrawal of its listing. The company has completed a consultation with the Anti-trust Bureau of SAMR, which confirmed that the proposal does not require a merger control filing, indicating a significant step forward in the privatization process. However, none of the pre-conditions have been satisfied yet, and stakeholders are advised to exercise caution as the proposal may or may not proceed.

ENN Energy Holdings Announces Privatization Proposal
Apr 17, 2025

ENN Natural Gas Co., Ltd. and Xinneng (Hong Kong) Energy Investment Limited have announced a pre-conditional proposal to privatize ENN Energy Holdings Limited through a scheme of arrangement under the Companies Act of the Cayman Islands. This proposal, which includes an ENN Share Option Offer, has been published on the Shanghai Stock Exchange. Stakeholders are advised to exercise caution as the proposal is subject to certain pre-conditions and conditions, and its implementation is not guaranteed.

ENN Energy Announces Privatization Proposal and Potential Delisting
Apr 16, 2025

ENN Energy Holdings Limited has announced a pre-conditional proposal to privatize the company through a scheme of arrangement, which could lead to its delisting. Altus Capital Limited has been appointed as the Independent Financial Adviser to guide the Independent Board Committee on this proposal. The proposal is subject to certain pre-conditions and conditions, and stakeholders are advised to exercise caution when dealing with the company’s securities as the proposal may or may not be implemented.

ENN Energy Holdings Announces 2025 Annual General Meeting
Apr 15, 2025

ENN Energy Holdings Limited has announced its annual general meeting to be held on May 23, 2025, in Hong Kong. Key agenda items include the consideration of the audited financial statements for 2024, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also address resolutions related to the issuance of shares, which could impact the company’s capital structure and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025