Bank of America Securities: Assigns "Buy" rating to ENN ENERGY (02688), dividend expected to release value.

16:27 04/08/2026

The bank expects to confirm a dividend of at least HKD 3 per share for the first half of the year, thereby driving a reevaluation of its valuation, and is also optimistic about the company's mid-term shareholder returns.

Bank of America Securities has released a research report stating that it maintains a Buy rating for ENN ENERGY (02688) with a target price of HKD 60, believing that dividends are expected to unlock value first. The report noted that although gas costs remain high in the short term, it believes that ENN ENERGY's valuation has already reflected the associated challenges, and any geopolitical stability could bring upside risks. The firm pointed out that ENN ENERGY is currently trading at a discount compared to its peers, and its dividend yield is higher. Considering its lower leverage and stronger free cash flow, this discount is deemed unreasonable. The firm anticipates that the performance in the first half of the year will at least confirm a dividend of HKD 3 per share, thereby driving a revaluation, and they are optimistic about mid-term shareholder returns. In a basic scenario, the oversupply in the LNG market, along with reduced gas costs, will drive the next stage of increases.

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