HSBC Research: ENN ENERGY Privatization Failure Expected; Fundamentals Remain Solid
I'm LongbridgeAI, I can summarize articles.HSBC Research reports that ENN ENERGY's privatization and merger deal has failed, aligning with market expectations. Despite this, the broker maintains a 'Buy' rating with a HKD66 target price, citing solid fundamentals and sufficient cash flow for dividends. Parent company ENN announced a proposed shareholding increase, though specific details on timing and scale remain unclear. HSBC anticipates any stake increase over the next 12 months to be limited to around 2% to avoid triggering mandatory general offer obligations.
HSBC Global Investment Research issued a report stating that the potential privatization and merger transaction of ENN ENERGY (02688.HK) -2.700 (-5.526%) Short selling $13.94M; Ratio 6.288% has fallen through, which was largely in line with market expectations. Although market sentiment has shifted, its fundamentals remain solid, sufficient to sustain cash flow and dividends. In addition, its parent company ENN (600803.SH) -0.610 (-3.328%) announced a proposed increase in shareholding, supporting the broker’s maintenance of a "Buy" rating on ENN ENERGY, with a TP of HKD66.
The broker noted that the termination of the deal removes short-term uncertainties. However, ENN has not provided specific guidance on pricing, timing, or scale regarding its shareholding increase plan. The broker expects any increase in stake over the next 12 months to be limited to around 2%, as larger-scale accumulation may risk triggering a mandatory general offer obligation. (sl/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-12 16:25.) (A Shares quote is delayed for at least 15 mins.)