[ET Net News Agency, 3 September 2018] Nomura lifted its target price for ENN Energy
Holdings (02688) to HK$94.4 from HK$93, and maintained its "buy" rating.
The research house said ENN management raised full-year gas volume guidance from 20% to
20-25% this year, on strong retail gas volume in 1H (+23%). The company remains confident
of achieving 20-25% retail gas volume growth this year driven by: (1) continued industrial
coal-to-gas conversion and volume ramp-up of new C&I customers; and (2) robust economics
of gas at the current oil price level.
Management guided for slightly higher dollar margin in 2H versus 1H mainly on: (1) one
month less in the heating season; (2) protection of competitive LNG contracts (CNY2.14/cm
on US$75 Brent with further upsides capped at USD80 Brent) this winter.
Nomura revised up its 2018/2019 EPS forecasts by 11%/6% on stronger-than-expected gas
volume growth and better cost control in 1H. (KL)