Citigroup: Lowered target price of ENN ENERGY (02688)H shares to 50 Hong Kong dollars. Rating downgraded to "Neutral".

Citigroup released a research report, stating that it has lowered the target price of ENN ENERGY (02688) H shares by 31%, from HK$72 to HK$50, and downgraded its rating from "buy" to "neutral". Citigroup pointed out that ENN Natural Gas (600803.SH), the parent company of ENN ENERGY, has cancelled its privatization plan, leading to the downgrade of the rating to "neutral". The transaction has been waiting for approval from the China Securities Regulatory Commission for nearly a year, and the timetable for meeting all conditions is still unclear. From a fundamental perspective, the outlook for ENN ENERGY is not good, as retail natural gas sales growth is weak, the number of new household customers is decreasing, and comprehensive energy sales are declining. The bank believes that the cancellation of the privatization plan means that there will be no positive factors in the near future. It forecast a dividend yield of 6.4% for 2026. With global liquefied natural gas prices rising, the bank is more optimistic about its parent company, ENN Natural Gas, and believes that its upstream direct natural gas sales business is poised to expand.