Daiwa issued a Research Report indicating that the USA may impose tariffs on China's Commodities next year, which will continue to pressure China's macroeconomic outlook and drag down industrial energy demand. Therefore, the rating of ENN ENERGY (02688.HK) has been downgraded from 'Outperform' to 'Hold', urging investors to take moderate profits as the company's stock price remains relatively strong in the near term.

Daiwa maintains its profit forecasts for ENN ENERGY from 2024 to 2026 unchanged. Although holding a cautious view on market demand, there is still a Bullish outlook for ENN's Henry Hub Natural Gas sales. It is believed that enhancing market share, exploring new customer sources, and the potential winter in 2025 may support ENN ENERGY in coping with the potential decline in sales during the summer of 2025, maintaining the Target Price at 56 yuan.