Kinwus Finance | Bocom Intl issued research reports, enn energy (02688) announced third-quarter operational data, with a 5.5% year-on-year increase in retail gas volume, and the gas gross margin is 0.54 yuan per cubic meter. Both retail gas sales volume and gross margin met expectations. Currently, the company maintains its guidance for a 5% increase in retail gas sales volume and a 10% increase in sector gross profit for the full year of 2024.

As for the energy sector, sales volume in the third quarter/nine months increased by 13%/21% year-on-year. Management expects a quarter-on-quarter increase in heat sales in the fourth quarter of this year, coupled with new projects bringing new revenue contributions, still expecting annual energy sales to basically reach the annual guidance of a 20% year-on-year increase. The bank pointed out that there is still high visibility of incremental growth in the energy sector in the fourth quarter, supporting the achievement of the annual growth target.

Management stated that actual capital expenditures for the year may be lower than expected. As for how to use the remaining funds, management mentioned it would prioritize reducing bank loans first, then consider whether to increase repurchases or dividends. The bank maintains its profit forecast and target price of HK$65.10 unchanged, and maintains a buy rating.