DB:XGH

Stock Analysis Report

ENN Energy Holdings

Executive Summary

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructures; and integrated energy, and vehicle and ship refueling stations in the People’s Republic of China.

Rewards

Trading at 65.7% below its fair value

Earnings are forecast to grow 9.93% per year

Earnings grew by 101.2% over the past year

Pays a high and reliable dividend of 2.23%

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Outstanding track record established dividend payer.

Share Price & News

How has ENN Energy Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XGH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.7%

XGH

-1.7%

DE Gas Utilities

-0.6%

DE Market


1 Year Return

13.7%

XGH

-26.1%

DE Gas Utilities

-20.9%

DE Market

Return vs Industry: XGH exceeded the German Gas Utilities industry which returned -27.4% over the past year.

Return vs Market: XGH exceeded the German Market which returned -20.4% over the past year.


Shareholder returns

XGHIndustryMarket
7 Day7.7%-1.7%-0.6%
30 Day-9.0%-21.8%-20.0%
90 Day-8.1%-22.5%-26.3%
1 Year15.6%13.7%-22.3%-26.1%-18.6%-20.9%
3 Year76.2%67.5%0.8%-13.8%-19.0%-25.8%
5 Year57.2%43.9%7.4%-20.9%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is ENN Energy Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ENN Energy Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XGH (€8.55) is trading below our estimate of fair value (€24.91)

Significantly Below Fair Value: XGH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: XGH is poor value based on its PE Ratio (13.3x) compared to the Gas Utilities industry average (12.4x).

PE vs Market: XGH is good value based on its PE Ratio (13.3x) compared to the German market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: XGH is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: XGH is overvalued based on its PB Ratio (2.9x) compared to the XE Gas Utilities industry average (1.1x).


Next Steps

Future Growth

How is ENN Energy Holdings forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XGH's forecast earnings growth (9.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: XGH's earnings (9.9% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: XGH's earnings are forecast to grow, but not significantly.

Revenue vs Market: XGH's revenue (13.5% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: XGH's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XGH's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has ENN Energy Holdings performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XGH has high quality earnings.

Growing Profit Margin: XGH's current net profit margins (8.1%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: XGH's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: XGH's earnings growth over the past year (101.2%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: XGH earnings growth over the past year (101.2%) exceeded the Gas Utilities industry -4.5%.


Return on Equity

High ROE: XGH's Return on Equity (22.1%) is considered high.


Next Steps

Financial Health

How is ENN Energy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: XGH's short term assets (CN¥19.5B) do not cover its short term liabilities (CN¥31.3B).

Long Term Liabilities: XGH's short term assets (CN¥19.5B) exceed its long term liabilities (CN¥18.9B).


Debt to Equity History and Analysis

Debt Level: XGH's debt to equity ratio (62.6%) is considered high.

Reducing Debt: XGH's debt to equity ratio has reduced from 104.3% to 62.6% over the past 5 years.

Debt Coverage: XGH's debt is well covered by operating cash flow (60.2%).

Interest Coverage: XGH's interest payments on its debt are well covered by EBIT (18.9x coverage).


Balance Sheet

Inventory Level: XGH has a high level of physical assets or inventory.

Debt Coverage by Assets: XGH's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is ENN Energy Holdings's current dividend yield, its reliability and sustainability?

2.10%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: XGH's dividend (2.23%) is higher than the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: XGH's dividend (2.23%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: XGH's dividends per share have been stable in the past 10 years.

Growing Dividend: XGH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), XGH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XGH's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jishen Han (54yo)

2.25s

Tenure

CN¥7,823,000

Compensation

Mr. Han Jishen is the Chief Executive Officer of ENN Energy Holdings Limited since January 12, 2018. Mr. Han served as the President of ENN Energy Holdings Limited until January 12, 2018 and served as its  ...


CEO Compensation Analysis

Compensation vs Market: Jishen's total compensation ($USD1.10M) is below average for companies of similar size in the German market ($USD5.21M).

Compensation vs Earnings: Jishen's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yusuo Wang
Co-Founder & Chairman0.083yrCN¥3.46m3.57% CN¥376.2m
Jishen Han
CEO & Executive Director2.25yrsCN¥7.82m0.0027% CN¥281.1k
Yip Sang Cheung
Vice Chairman6.08yrsCN¥4.81mno data
Dongzhi Wang
Executive Director9.08yrsCN¥2.25m0.0027% CN¥281.1k
Yuying Zhang
Chief Strategy Officer0.33yrno datano data
Jianfeng Liu
Chief Financial Officer1.42yrsno datano data
Chengwen Yang
Chief Technology Officerno datano datano data
Yunfeng Niu
Chief Information Officerno datano datano data
Jin Zhang
Chief Human Resources Officerno datano datano data
Xiaojing Wu
Senior Vice Presidentno datano datano data

1.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: XGH's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yusuo Wang
Co-Founder & Chairman0.083yrCN¥3.46m3.57% CN¥376.2m
Jishen Han
CEO & Executive Director2.25yrsCN¥7.82m0.0027% CN¥281.1k
Yip Sang Cheung
Vice Chairman6.08yrsCN¥4.81mno data
Dongzhi Wang
Executive Director9.08yrsCN¥2.25m0.0027% CN¥281.1k
Yuying Zhang
Chief Strategy Officer0.33yrno datano data
Yongsheng Jin
Non Executive Director0.083yrCN¥148.00k0.014% CN¥1.4m
Yu Yu Yien
Independent Non-Executive Director1.42yrsCN¥33.00k0.0094% CN¥991.9k
Yee Kwan Law
Independent Non-Executive Director5.92yrsCN¥489.00kno data
Zizheng Wang
Non-Executive Director6.08yrsCN¥2.65mno data
Po Kwong Yuen
Independent Non-Executive Director6.08yrsCN¥489.00kno data

6.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: XGH's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: XGH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

ENN Energy Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ENN Energy Holdings Limited
  • Ticker: XGH
  • Exchange: DB
  • Founded: 1992
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$88.070b
  • Listing Market Cap: HK$10.529b
  • Shares outstanding: 1.13b
  • Website: https://www.xinaogas.com/wps/portal/xanyzh/

Number of Employees


Location

  • ENN Energy Holdings Limited
  • Building A
  • ENN Industrial Park
  • Langfang
  • Hebei Province
  • 65001
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XNGS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2001
XGHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2001
2688SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2001
2688SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2001
2688SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2001
2688 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 2001
XNGS.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructures; and integrated energy, and vehicle and ship refueling stations in the People’s Republic of China. It operates through Retail Gas Sales Business, Sales of Integrated Energy and Services, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also sells and distributes piped gas, liquefied natural gas, and other multi-energy products; and provides other services in relation to energy supply, as well as engages in energy trading business. In addition, it retails gas pipelines, and related materials and equipment; transports oil products and gas; and sources compressed pipeline gas, as well as wholesales and retails LNG, CNG, gas equipment, appliances, and others; and provides financial services. As of December 31, 2019, the company served approximately 20,920,000 residential customers and 150,000 commercial/industrial customers. The company was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. ENN Energy Holdings Limited was founded in 1992 and is headquartered in Langfang, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 20:51
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.