[ET Net News Agency, 9 October 2018] Daiwa Research raised its target price for ENN
Energy (02688) to HK$90.5 from HK$89.9, and upgraded its rating to "buy" from
"outperform".
The research house said ENN's share price has fallen by 16% since September on
regulatory concerns including connection fees. While rising gas costs could add pressure
to the long-term distribution dollar margin, Daiwa reiterated its preference for ENN as a
long-term investment given its rapid distributed-energy (DE) development, while its LNG
hedging should help drive a sector-high 17% EPS CAGR over 2017-20.
Daiwa raised its 2019-20 net profit by 1.2-1.7% on higher-than-expected DE/IE
(integrated-energy) project net profit. (KL)