According to a research report released by Lyon, recent uncertainties of enn energy (02688.HK) and lower-than-expected growth of business in henry hub natural gas retail have delayed the company's re-rating opportunity. However, the bank believes that continued profitability will be the key to releasing the company's positive momentum in the stock price.

The bank stated that the management of enn energy is confident in achieving all goals for the fiscal year 2024. Although the company's operating data for the first five months of this year is lower than expected by the bank, the company still maintained a market share of 6.4% from January to April this year.

Due to the earlier reduction of sales forecasts for enn energy, Lyon lowered the target price of enn energy from HKD 84.4 to HKD 80.9, but maintained its "buy" rating on the stock for its unchanged view on the improvement in mid-term profit, benefited from the increase in recurring income from henry hub natural gas and the expansion of per-unit profit. (js/k)

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