ENN Energy Holdings (XNGSF) AI Stock Analysis

• Market Cap: $9.27B
• Dividend Yield: 4.53%
• Average Volume (3M): 122.00
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 35,197
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Gas
• EPS (TTM): 0.74
• Shares Outstanding: 1,131,229,900
• 10 Day Avg. Volume: 172
• 30 Day Avg. Volume: 122
• PEG Ratio: -19.24
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.54
• Price Target Upside: 0.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

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 Business Overview & Revenue Model

Company Description

ENN 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

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
	EBIT
8.70B	8.47B	10.31B	9.21B	8.15B
	EBITDA
10.75B	11.56B	12.70B	11.29B	10.03B
	Net Income Common Stockholders
5.99B	6.82B	5.87B	7.75B	6.28B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.69B	9.79B	8.08B	8.84B	8.70B
	Total Assets
103.22B	103.13B	102.36B	99.99B	90.04B
	Total Debt
20.39B	22.73B	20.53B	20.58B	20.17B
	Net Debt
12.70B	13.04B	12.47B	11.89B	11.54B
	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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XNGSF		$9.27B	11.43	13.65%	4.53%	―	―
Sector *	64 Neutral	$8.53B	10.34	4.24%	4.37%	4.14%	-13.04%
CGHOF		$5.04B	12.52	5.56%	6.92%	―	―
CRGGF		$6.21B	12.16	9.94%	4.34%	―	―
HOKCF		$16.19B	22.17	9.72%	5.15%	―	―
TGASF		$1.59B	7.54	6.93%	4.50%	―	―
MJVC		€1.30B	71.29	1.91%	―	―	―