[ET Net News Agency, 26 August 2019] HSBC Global Research raised its target price for
ENN Energy Holdings (02688) to HK$93 from HK$89 and maintained its "buy" rating.
The research house said ENN Energy's 1H core profit, after stripping out one-off items,
of RMB2,734m was ahead of HSBC's expectations. The performance was driven by gas volume
(+15%) and a boost in integrated energy and value-added services, although partially
offset by a squeeze in the dollar margin.
ENN maintained guidance of 2.3m residential households for 2019 (2018: 2.3m), including
400-500k units as rural coal-to-gas, which comes in at a lower margin and would drag down
the average for this segment. HSBC lifted its 2019-21 EPS forecasts by 3-6%. (KL)