CCB International: Maintains "Neutral" rating on ENN ENERGY (02688), lowers target price to 56.9 Hong Kong dollars.

CICC International Research Report released that it maintains a "neutral" rating for ENN ENERGY (02688), with the target price lowered from HK$58 to HK$56.9. The bank believes that the profit decline of ENN ENERGY last year was within market expectations, and expects that the potential profit recovery and dividend increase this year will lead to a better valuation. CICC International anticipates that the core profit of Xinao last year will decrease by 10% year-on-year. Excluding the impact of LNG settlement income, the bank expects that the group's domestic business profit will increase by 8% year-on-year last year, with retail gas volume increasing by 4.4% and gas sales price margin rising by 4 cents to 0.54 RMB per cubic meter. Despite the overall decline in group profit, it is believed that there are plans to increase dividends to maintain dividends steady or moderately grow.