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ENN Energy Holdings Limited (XNGSF)
OTHER OTC:XNGSF

ENN Energy Holdings (XNGSF) AI Stock Analysis

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Positive Factors
Decarbonisation
The company has a detailed decarbonisation roadmap, paving the way for business opportunities in integrated energy.
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 Pricing
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 (XNGSF) vs. SPDR S&P 500 ETF (SPY)

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 Money

ENN Energy Holdings Financial Statement Overview

Summary
ENN Energy Holdings shows a solid financial position with strong profitability and efficient cash flow management. While the company demonstrates robust operational efficiency and consistent revenue streams, there are some pressures on profit margins and rising liabilities that warrant attention. The overall financial health is stable, with a positive outlook, contingent upon careful management of leverage and continued operational efficiency.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
109.85B113.86B110.05B93.11B71.62B
Gross Profit
13.40B14.34B15.76B14.06B12.33B
EBIT
8.70B8.47B10.31B9.21B8.15B
EBITDA
10.75B11.56B12.70B11.29B10.03B
Net Income Common Stockholders
5.99B6.82B5.87B7.75B6.28B
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.69B9.79B8.08B8.84B8.70B
Total Assets
103.22B103.13B102.36B99.99B90.04B
Total Debt
20.39B22.73B20.53B20.58B20.17B
Net Debt
12.70B13.04B12.47B11.89B11.54B
Total Liabilities
52.14B54.87B56.80B57.84B53.87B
Stockholders Equity
45.10B42.66B39.04B35.78B30.56B
Cash FlowFree Cash Flow
3.56B3.12B3.86B4.21B4.18B
Operating Cash Flow
10.29B9.61B10.10B10.47B9.70B
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 Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$9.27B11.4313.65%4.53%
64
Neutral
$8.53B10.344.24%4.37%4.14%-13.04%
$5.04B12.525.56%6.92%
$6.21B12.169.94%4.34%
$16.19B22.179.72%5.15%
$1.59B7.546.93%4.50%
€1.30B71.291.91%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XNGSF
ENN Energy Holdings
8.20
0.09
1.11%
CGHOF
China Gas Holdings
0.92
0.05
5.75%
CRGGF
China Resources Gas Group
2.81
-0.58
-17.11%
HOKCF
Hong Kong & China Gas Co
0.85
0.13
18.06%
TGASF
Towngas China Co
0.46
0.11
31.43%
DE:MJVC
Zhongyu Gas Holdings Limited
0.44
-0.12
-21.43%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.