Understanding the Market | ENN Energy rises over 3%, privatization plan pricing deemed reasonable, institutions indicate new progress expected in the fourth quarter
ENN Energy rose over 3%, as of the time of writing, it increased by 2.66%, reported at HKD 67.6, with a transaction volume of HKD 201 million. On the news front, Guoyuan International pointed out that according to the privatization plan, the theoretical total value of ENN Energy's parent company, ENN-NG, acquired is HKD 80 per share, which is still a premium of about 26% compared to the current price. The HKD 80 share price consists of cash and share exchange components, with cash payment of HKD 24.5 per share and share exchange payment of 2.94 shares of ENN-NG H shares per share. According to the plan, the median price of ENN-NG H shares after listing is HKD 18.86, corresponding to a dynamic PE of about 10 times for 2025. Based on the company's stable growth in performance and dividends, there is still potential for upward valuation of H shares in the future. Overall, the company's privatization plan is reasonably priced and fully considers the interests of existing and long-term shareholders. The firm noted that based on the progress announced by the company, it still needs to wait for the registration and filing by relevant government departments in mainland China, approval/filing by the China Securities Regulatory Commission, and listing approval from the Hong Kong Stock Exchange, as well as at least 2/3 of independent shareholders voting in favor of these three prerequisites, looking forward to new developments in the fourth quarter
According to Zhitong Finance APP, ENN Energy Holdings (02688) rose over 3%, and as of the time of publication, it was up 2.66%, trading at HKD 67.6, with a transaction volume of HKD 201 million.
In terms of news, Guoyuan International pointed out that according to the privatization plan, the theoretical total value of ENN Energy's parent company, ENN-NG, acquired is HKD 80 per share, which is still a premium of about 26% compared to the current price. The HKD 80 share price consists of two parts: cash payment of HKD 24.5 per share and share exchange payment of 2.94 shares of ENN-NG H shares per share. According to the plan, the median price of ENN-NG H shares after listing is HKD 18.86, corresponding to a dynamic PE of about 10 times for 2025. Based on the stable growth of the company's performance and dividends, there is still potential for upward valuation of H shares in the future. Overall, the company's privatization plan is reasonably priced and fully considers the interests of existing and long-term shareholders.
The firm pointed out that based on the progress announced by the company, it still needs to wait for the registration and filing by relevant government departments in mainland China, approval/filing by the China Securities Regulatory Commission, listing approval by the Hong Kong Stock Exchange, and at least 2/3 of independent shareholders voting in favor of these three prerequisites. They look forward to new developments in the fourth quarter
