Citigroup released a research report, announcing the opening of a 30-day upward catalyst observation period for enn energy (02688.HK), pointing out that its stock price has fallen by over 40% in the past four months. It is believed that this is due to the retail gas sales growth this year being expected to reach only 5%, which is lower than market expectations given the lower base last year, and Chairman Wang Yusuo not attending any mid-term business performance events.

The report points out that unlike competitors such as China Resources Gas (01193.HK), enn energy did not take into account the gas sales of its comprehensive energy projects, which is expected to have a negative impact on its retail gas sales growth. The bank envisages that the Chairman can actively communicate with investors to clarify its business strategy and rebuild investor confidence. It believes that the current valuation and dividend return rate are attractive, and it reiterates a "buy" rating with a target price of HKD 66 and predicts a dividend return rate of 5% this year.