HK Stock Market Move | ENN ENERGY (02688) opens higher by more than 5%, intends to authorize the trustee to continue buying shares on the open market with no more than HK$300 million.

ENN ENERGY (02688) opened more than 5% higher. As of the time of writing, it rose by 5.09% to 55.7 Hong Kong dollars, with a turnover of 184.144 million Hong Kong dollars. In terms of news, ENN ENERGY (02688) issued an announcement that the board of directors approved the company to use up to one billion US dollars equivalent in Hong Kong dollars for the company's share award plan adopted on November 30, 2018. The trustee responsible for managing the share award plan was instructed to purchase ordinary shares listed on the main board of the Stock Exchange of Hong Kong Limited for use in the share award plan. On the same day, the board announced that the company intended to use up to another three billion Hong Kong dollars in funding to repurchase shares in the open market. China International Capital Corporation (CICC) released a research report stating that at the current stock price, ENN ENERGY's estimated dividend yield for 2024 is about 5.9%. The bank believes that it is highly attractive for long-term investors. In addition, based on the current development of the urban gas industry, the bank believes that the company's capital expenditure scale in the medium to long term may be reduced to 50-60 billion yuan per year. With a reduction in capital expenditure and improvement in the profitability of the natural gas retail business, the bank believes that the company's free cash flow could be increased to 60-70 billion yuan per year in the medium to long term, indicating that there is still significant room for improvement in the company's dividend-paying capacity in the medium to long term.