[ET Net News Agency, 23 March 2020] Daiwa Research tweaked its target price for ENN
Energy (02688) to HK$100 from HK$101 and maintained its "buy" rating.
The research house said ENN's share price is down 16% since the company announced a 40%
growth in DPS in its 2019 results on 16 March. Daiwa believes ENN is the only city-gas
company set to deliver a 15%-plus EPS CAGR or 20%-plus DPS CAGR for 2019-22, on the strong
earnings contribution from distributed-energy/integrated-energy (DE/IE) and value-added
services (VAS).
With the share-price correction, Daiwa noted that ENN's dividend yield is appealing, at
3.3% for 2020, with its 1.7pp yield growth over 2020-22 outperforming all big-cap city-gas
peers' 0.7-1.1pp. (KL)