BofAS Gives ENN ENERGY Buy Rating; DPS Likely to Unlock Value
I'm LongbridgeAI, I can summarize articles.BofA Securities issued a Buy rating for ENN ENERGYwith a HKD60 target price, citing unjustified valuation discounts and strong fundamentals like lower leverage and robust free cash flow. The broker anticipates dividends as the primary catalyst, forecasting at least HKD3 DPS in H1'26 to drive re-rating. While short-term gas costs remain high, stabilization in geopolitics and potential LNG oversupply could unlock upside risks.
BofA Securities published a report giving ENN ENERGY (02688.HK) +0.280 (+0.601%) Short selling $21.35M; Ratio 9.769% a Buy rating with a TP of HKD60, foreseeing dividends are likely to be the first catalyst to unlock value.
Although gas costs remain at elevated levels in the short term, the broker believed ENN ENERGY's valuation has already reflected the related challenges, while any stabilization in geopolitical conditions could bring upside risks.
The broker said ENN ENERGY is trading at a discount to peers while offering a higher dividend yield. In view of its lower leverage and stronger FCF, the discount is viewed as unjustified.
The broker forecast the 1H26 results to confirm at least a HKD3 DPS, thereby driving a valuation re-rating, and it is also positive on the company's medium-term shareholder returns. Under the base case, oversupply in the LNG market and lower natural gas costs will drive the next phase of gains.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-03 16:25.)