HSBC Global Research lowered ENN Energy’s target price to HK$100 from HK$127, kept Buy rating

 

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ENN Energy’s first-half net profit rose 7% year over year to 3.3 billion yuan, while core profit fell 5% from a year earlier, HSBC Global Research noted.

The company’s retail gas sales fell 7% year over year in the first half, dragged down by a lack of demand from industrial users and weaker-than-expected recovery in demand from commercial users, it said.

The broker noted that ENN’s integrated energy revenue rose 30% year over year in the first half, and management has reiterated its full-year growth target of 40%.

HSBC lowered the forecast of the company’s 2023-25 adjusted profit by 9% – 14%, and dropped its target price from HK$127 to HK$100, maintaining its Buy rating.