[ET Net News Agency, 24 June 2020] J.P. Morgan raised its target price for ENN Energy
Holdings (02688) to HK$102.5 from HK$93.3 to factor in better gas sales margins after
PetroChina's gas price cut. But JPM downgraded its rating to "neutral" from "overweight".
The research house said the shares have outperformed HSCEI by 24% and peers by 15% in
the past three months. The current price factored in a V-shaped recovery in ENN's gas
volume sales (20% growth in 2H from 4.5% in 1H), stable margins, and a doubling in revenue
for the integrated energy segment.
JPM raised its 2020-22 EPS estimates by 2-4% to factor in the lower gas cost and higher
volume sales in FY2021-22. (KL)