ENN Energy 4000-word in-depth research report

$ENN ENERGY(02688.HK)$CHINA RES GAS(01193.HK) $CHINA GAS HOLD(00384.HK) Research on ENN Energy, its franchise network is the core moat.

🎯 Core logic: Natural gas as a transitional fuel for clean energy transformation has strong demand stability (residential + commercial consumption), with clear industry growth (targeting 15% share of primary energy by 2030). ENN is a leading city gas enterprise (market share ~10%), with its core barrier being the franchise network covering 228 cities, creating regional exclusivity, high switching costs, and economies of scale. The business model is evolving from traditional "gas sales + connection" to integrated energy services, with integrated energy revenue growing over 30% for several consecutive years, becoming the future growth engine.

📈 Financial highlights: ROE dropped from 22.25% in 2020 to 13.64% in 2024, gross margin 12.20%, net margin 5.45%. Although efficiency has declined, it remains above industry standards. Debt-to-asset ratio 50.52% (safe range), current ratio 0.68 (weak short-term solvency). Stable operating cash flow (CNY 10.294 billion in 2024), free cash flow CNY 3.56 billion, net profit cash ratio 1.72 (high-quality profit). 2024 revenue CNY 109.853 billion (-3.5% YoY), net profit CNY 5.987 billion (declining for two consecutive years), growth entering a plateau, relying on new customer expansion, increased share of integrated energy services, and M&A integration.