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ENN Energy Holdings

SEHK:2688
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2688
SEHK
HK$83B
Market Cap
  1. Home
  2. HK
  3. Utilities
Company description

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructures, vehicle and ship refuelling stations, and integrated energy stations in the People’s Republic of China. The last earnings update was 61 days ago. More info.


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2688 Share Price and Events
7 Day Returns
2.2%
SEHK:2688
1.8%
HK Gas Utilities
1.1%
HK Market
1 Year Returns
-2.8%
SEHK:2688
5.5%
HK Gas Utilities
-15.4%
HK Market
2688 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ENN Energy Holdings (2688) 2.2% 7.7% -8.2% -2.8% 95.3% 32.3%
HK Gas Utilities 1.8% 3.1% -1.3% 5.5% 69.6% 37%
HK Market 1.1% -3.4% -8.1% -15.4% 21.3% 3.6%
1 Year Return vs Industry and Market
  • 2688 underperformed the Gas Utilities industry which returned 5.5% over the past year.
  • 2688 outperformed the Market in Hong Kong which returned -15.4% over the past year.
Price Volatility
2688
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for ENN Energy Holdings's competitors could be found in our database.

2688 Value

 Is ENN Energy Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ENN Energy Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ENN Energy Holdings.

SEHK:2688 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 26 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2688
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Gas Utilities Unlevered Beta Simply Wall St/ S&P Global 0.41
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.406 (1 + (1- 25%) (27.91%))
0.659
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 5.96%)
6.77%

Discounted Cash Flow Calculation for SEHK:2688 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ENN Energy Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2688 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 6.77%)
2019 1,838.00 Analyst x4 1,721.44
2020 3,094.14 Analyst x9 2,714.15
2021 5,232.60 Analyst x5 4,298.90
2022 3,306.33 Analyst x3 2,544.10
2023 4,835.67 Analyst x3 3,484.90
2024 5,136.08 Est @ 6.21% 3,466.66
2025 5,390.29 Est @ 4.95% 3,407.52
2026 5,609.44 Est @ 4.07% 3,321.18
2027 5,802.78 Est @ 3.45% 3,217.78
2028 5,977.66 Est @ 3.01% 3,104.55
Present value of next 10 years cash flows CN¥31,281.18
SEHK:2688 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥5,977.66 × (1 + 2%) ÷ (6.77% – 2%)
CN¥127,881.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥127,881.52 ÷ (1 + 6.77%)10
CN¥66,416.30
SEHK:2688 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥31,281.18 + CN¥66,416.30
CN¥97,697.48
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥97,697.48 / 1,124.14
CN¥86.91
SEHK:2688 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2688)
1.13
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥86.91 x 1.13
HK$98.22
Value per share (HKD) From above. HK$98.22
Current discount Discount to share price of HK$74.10
= -1 x (HK$74.10 - HK$98.22) / HK$98.22
24.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ENN Energy Holdings is available for.
Intrinsic value
25%
Share price is HK$74.1 vs Future cash flow value of HK$98.22
Current Discount Checks
For ENN Energy Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ENN Energy Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ENN Energy Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ENN Energy Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ENN Energy Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2688 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥2.56
SEHK:2688 Share Price ** SEHK (2019-06-14) in HKD HK$74.1
SEHK:2688 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥65.57
Hong Kong Gas Utilities Industry PE Ratio Median Figure of 13 Publicly-Listed Gas Utilities Companies 18.13x
Hong Kong Market PE Ratio Median Figure of 1,488 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ENN Energy Holdings.

SEHK:2688 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2688 Share Price ÷ EPS (both in CNY)

= 65.57 ÷ 2.56

25.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ENN Energy Holdings is overvalued based on earnings compared to the HK Gas Utilities industry average.
  • ENN Energy Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does ENN Energy Holdings's expected growth come at a high price?
Raw Data
SEHK:2688 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts
19%per year
Hong Kong Gas Utilities Industry PEG Ratio Median Figure of 8 Publicly-Listed Gas Utilities Companies 1.24x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.77x

*Line of best fit is calculated by linear regression .

SEHK:2688 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.58x ÷ 19%

1.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ENN Energy Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ENN Energy Holdings's assets?
Raw Data
SEHK:2688 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥19.03
SEHK:2688 Share Price * SEHK (2019-06-14) in HKD HK$74.1
SEHK:2688 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥65.57
Hong Kong Gas Utilities Industry PB Ratio Median Figure of 14 Publicly-Listed Gas Utilities Companies 1.4x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.94x
SEHK:2688 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2688 Share Price ÷ Book Value per Share (both in CNY)

= 65.57 ÷ 19.03

3.45x

* Primary Listing of ENN Energy Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ENN Energy Holdings is overvalued based on assets compared to the HK Gas Utilities industry average.
X
Value checks
We assess ENN Energy Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
  5. ENN Energy Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2688 Future Performance

 How is ENN Energy Holdings expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ENN Energy Holdings expected to grow at an attractive rate?
  • ENN Energy Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • ENN Energy Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • ENN Energy Holdings's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2688 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2688 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts 19%
SEHK:2688 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 15.7%
Hong Kong Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
Hong Kong Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2688 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2688 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 134,019 13,749 8,606 2
2022-12-31 120,391 12,760 7,840 2
2021-12-31 106,257 11,010 6,579 23
2020-12-31 90,446 9,935 5,734 26
2019-12-31 72,510 9,063 5,032 19
SEHK:2688 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 60,698 8,294 2,818
2018-09-30 57,037 7,418 2,877
2018-06-30 53,375 6,541 2,935
2018-03-31 50,822 6,317 2,869
2017-12-31 48,269 6,093 2,802
2017-09-30 44,079 5,581 2,508
2017-06-30 39,888 5,068 2,213
2017-03-31 36,996 5,217 2,182
2016-12-31 34,103 5,366 2,151
2016-09-30 32,959 5,371 2,274
2016-06-30 31,815 5,375 2,396
2016-03-31 31,939 5,046 2,216

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ENN Energy Holdings's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).
  • ENN Energy Holdings's revenue is expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2688 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below

All data from ENN Energy Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2688 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 7.73 7.93 7.53 2.00
2022-12-31 7.05 7.35 6.74 2.00
2021-12-31 5.90 7.76 4.40 23.00
2020-12-31 5.15 6.28 3.87 25.00
2019-12-31 4.52 4.97 4.29 21.00
SEHK:2688 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 2.56
2018-09-30 2.64
2018-06-30 2.71
2018-03-31 2.65
2017-12-31 2.59
2017-09-30 2.32
2017-06-30 2.05
2017-03-31 2.02
2016-12-31 1.99
2016-09-30 2.10
2016-06-30 2.21
2016-03-31 2.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ENN Energy Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ENN Energy Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ENN Energy Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2688 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ENN Energy Holdings's growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ENN Energy Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • ENN Energy Holdings's 1-year earnings growth is less than its 5-year average (0.6% vs 7.4%)
  • ENN Energy Holdings's earnings growth has not exceeded the HK Gas Utilities industry average in the past year (0.6% vs 10.7%).
Earnings and Revenue History
ENN Energy Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ENN Energy Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2688 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 60,698.00 2,818.00 3,441.00
2018-09-30 57,036.50 2,876.50 3,390.00
2018-06-30 53,375.00 2,935.00 3,339.00
2018-03-31 50,822.00 2,868.50 3,175.50
2017-12-31 48,269.00 2,802.00 3,012.00
2017-09-30 44,078.50 2,507.50 2,861.50
2017-06-30 39,888.00 2,213.00 2,711.00
2017-03-31 36,995.50 2,182.00 2,734.00
2016-12-31 34,103.00 2,151.00 2,757.00
2016-09-30 32,959.00 2,273.50 2,751.00
2016-06-30 31,815.00 2,396.00 2,745.00
2016-03-31 31,939.00 2,216.00 2,714.00
2015-12-31 32,063.00 2,036.00 2,683.00
2015-09-30 31,343.00 2,508.50 2,620.00
2015-06-30 30,623.00 2,981.00 2,557.00
2015-03-31 29,855.00 2,974.50 2,487.00
2014-12-31 29,087.00 2,968.00 2,417.00
2014-09-30 28,009.00 2,348.50 2,341.50
2014-06-30 26,931.00 1,729.00 2,266.00
2014-03-31 24,948.50 1,490.50 2,199.50
2013-12-31 22,966.00 1,252.00 2,133.00
2013-09-30 21,302.50 1,370.50 2,053.50
2013-06-30 19,639.00 1,489.00 1,974.00
2013-03-31 18,833.00 1,485.50 1,972.50
2012-12-31 18,027.00 1,482.00 1,971.00
2012-09-30 17,333.50 1,418.00 1,927.44
2012-06-30 16,640.00 1,354.00 1,883.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ENN Energy Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ENN Energy Holdings used its assets less efficiently than the HK Gas Utilities industry average last year based on Return on Assets.
  • ENN Energy Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ENN Energy Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ENN Energy Holdings has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2688 Health

 How is ENN Energy Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ENN Energy Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ENN Energy Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • ENN Energy Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ENN Energy Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ENN Energy Holdings Company Filings, last reported 5 months ago.

SEHK:2688 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 25,554.00 20,569.00 8,671.00
2018-09-30 25,554.00 20,569.00 8,671.00
2018-06-30 21,490.00 17,186.00 6,388.00
2018-03-31 21,490.00 17,186.00 6,388.00
2017-12-31 20,217.00 19,610.00 8,775.00
2017-09-30 20,217.00 19,610.00 8,775.00
2017-06-30 18,752.00 18,560.00 7,992.00
2017-03-31 18,752.00 18,560.00 7,992.00
2016-12-31 17,854.00 18,435.00 7,743.00
2016-09-30 17,854.00 18,435.00 7,743.00
2016-06-30 17,068.00 13,976.00 5,927.00
2016-03-31 17,068.00 13,976.00 5,927.00
2015-12-31 16,095.00 17,311.00 7,355.00
2015-09-30 16,095.00 17,311.00 7,355.00
2015-06-30 15,045.00 14,294.00 5,747.00
2015-03-31 15,045.00 14,294.00 5,747.00
2014-12-31 14,541.00 15,227.00 10,503.00
2014-09-30 14,541.00 15,227.00 10,503.00
2014-06-30 12,676.00 12,040.00 7,109.00
2014-03-31 12,676.00 12,040.00 7,109.00
2013-12-31 11,892.00 12,443.00 6,822.00
2013-09-30 11,892.00 12,443.00 6,822.00
2013-06-30 11,255.00 12,808.00 7,751.00
2013-03-31 11,255.00 12,808.00 7,751.00
2012-12-31 10,670.00 11,965.00 6,156.00
2012-09-30 10,670.00 11,965.00 6,156.00
2012-06-30 9,539.00 11,657.00 3,618.00
  • ENN Energy Holdings's level of debt (80.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (104.5% vs 80.5% today).
  • Debt is well covered by operating cash flow (40.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 50.2x coverage).
X
Financial health checks
We assess ENN Energy Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ENN Energy Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2688 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.55%
Current annual income from ENN Energy Holdings dividends. Estimated to be 2.75% next year.
If you bought HK$2,000 of ENN Energy Holdings shares you are expected to receive HK$31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ENN Energy Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • ENN Energy Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2688 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
Hong Kong Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2688 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.29 2.00
2022-12-31 2.84 2.00
2021-12-31 2.06 21.00
2020-12-31 1.65 24.00
2019-12-31 1.34 15.00
SEHK:2688 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-21 1.015 1.622
2018-03-22 0.862 1.470
2017-04-06 0.740 1.678
2017-03-21 0.740 1.876
2016-05-31 0.642 2.017
2016-04-07 0.640 1.917
2016-03-22 0.640 1.835
2015-03-27 0.660 1.874
2014-04-02 0.380 0.939
2014-03-24 0.380 0.891
2013-04-09 0.342 0.947
2013-03-26 0.342 0.996
2012-04-11 0.294 1.145
2012-03-27 0.294 1.310
2011-05-06 0.241 1.117
2011-04-06 0.241 1.090
2011-03-25 0.241 1.167
2010-04-19 0.191 1.012
2010-03-31 0.191 0.966

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, ENN Energy Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but ENN Energy Holdings only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of ENN Energy Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess ENN Energy Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ENN Energy Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ENN Energy Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2688 Management

 What is the CEO of ENN Energy Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jishen Han
COMPENSATION CN¥7,823,000
AGE 53
TENURE AS CEO 1.4 years
CEO Bio

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 Chief Executive Officer since March 24, 2014. Mr. Han served as Vice President of ENN Energy Holdings Limited and responsible for assisting the Chief Executive Officer and the Chief Operations Officer in market expansion. Mr. Han served as General Manager and General Manager of Hunan, Guangxi and Yunan Areas of Xinao Gas Holdings Ltd. Mr. Han served as deputy general manager of Xinao Gas Holdings Limited and was responsible for business development. Mr. Han joined Xinao Gas Holdings Limited at the end of 1993 and was responsible for management and operations. He was the general manager of Zhejiang, Langfang Xinao and Huludao Xinao. Mr. Han has over 18 years of experience in the gas fuel industry in the PRC. He served as the Chairman at ENN Energy Holdings Limited and has been its Executive Director since March 26, 2013. Mr. Han graduated from Baoding Staff University in 1990 and obtained an executive master’s degree in business administration from the Nanyang Technological University in Singapore in 2007.

CEO Compensation
  • Jishen's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Jishen's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the ENN Energy Holdings management team in years:

1.4
Average Tenure
49.5
Average Age
  • The average tenure for the ENN Energy Holdings management team is less than 2 years, this suggests a new team.
Management Team

Yusuo Wang

TITLE
Co-Founder & Chairman
COMPENSATION
CN¥3M
AGE
54

Zizheng Wang

TITLE
Executive Chairman
COMPENSATION
CN¥3M
AGE
30

Jishen Han

TITLE
CEO & Executive Director
COMPENSATION
CN¥8M
AGE
53
TENURE
1.4 yrs

Yip Sang Cheung

TITLE
Vice Chairman
COMPENSATION
CN¥5M
AGE
52

Min Liu

TITLE
President & Executive Director
COMPENSATION
CN¥6M
AGE
52
TENURE
1.4 yrs

Dongzhi Wang

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
49

Jianfeng Liu

TITLE
Chief Financial Officer
AGE
41
TENURE
0.6 yrs

Yunfeng Niu

TITLE
Chief Information Officer
AGE
42

Jean Zhang

TITLE
Chief Human Resources Officer
AGE
44

Xiaojing Wu

TITLE
Senior Vice President
AGE
50
Board of Directors Tenure

Average tenure and age of the ENN Energy Holdings board of directors in years:

5.3
Average Tenure
52
Average Age
  • The tenure for the ENN Energy Holdings board of directors is about average.
Board of Directors

Yusuo Wang

TITLE
Co-Founder & Chairman
COMPENSATION
CN¥3M
AGE
54

Zizheng Wang

TITLE
Executive Chairman
COMPENSATION
CN¥3M
AGE
30

Jishen Han

TITLE
CEO & Executive Director
COMPENSATION
CN¥8M
AGE
53
TENURE
6.3 yrs

Yip Sang Cheung

TITLE
Vice Chairman
COMPENSATION
CN¥5M
AGE
52
TENURE
5.3 yrs

Min Liu

TITLE
President & Executive Director
COMPENSATION
CN¥6M
AGE
52
TENURE
1.4 yrs

Dongzhi Wang

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
49
TENURE
8.3 yrs

Po Kwong Yuen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥489K
AGE
49
TENURE
5.3 yrs

Quinn Law

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥489K
AGE
65
TENURE
5.1 yrs

Catherine Yien

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥33K
AGE
47
TENURE
0.6 yrs

Zhixiang Ma

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥489K
AGE
66
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by ENN Energy Holdings insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
16. May 19 Buy Zizheng Wang Individual 16. May 19 16. May 19 95,000 HK$68.38 HK$6,496,394
16. May 19 Buy Dongzhi Wang Individual 16. May 19 16. May 19 15,000 HK$68.41 HK$1,026,130
08. May 19 Buy Colonial First State Asset Management (Australia) Limited Company 07. May 19 07. May 19 283,500 HK$74.97 HK$21,253,996
13. Apr 19 Sell Capital Research and Management Company Company 11. Apr 19 11. Apr 19 -3,170,400 HK$76.20 HK$-241,599,687
11. Apr 19 Buy Colonial First State Asset Management (Australia) Limited Company 10. Apr 19 10. Apr 19 2,710,100 HK$76.18 HK$206,455,424
20. Aug 18 Buy Yusuo Wang Individual 16. Aug 18 16. Aug 18 39,926,534 HK$80.00 HK$3,194,122,677
03. Aug 18 Buy Capital Research and Management Company Company 02. Aug 18 02. Aug 18 4,852,000 HK$84.00 HK$407,568,018
26. Jul 18 Buy Capital Research and Management Company Company 24. Jul 18 24. Jul 18 15,919,000 HK$85.85 HK$1,366,646,135
13. Jul 18 Buy Capital Research and Management Company Company 11. Jul 18 11. Jul 18 783,000 HK$78.76 HK$61,671,352
X
Management checks
We assess ENN Energy Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ENN Energy Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2688 News

Simply Wall St News

What Investors Should Know About ENN Energy Holdings Limited's (HKG:2688) Financial Strength

Moreover, 2688 has produced CN¥8.3b in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 40%, meaning that 2688’s current level of operating cash is high enough to cover debt. … Looking at 2688’s CN¥33b in current liabilities, it appears that the company may not be able to easily meet these obligations given the level of current assets of CN¥22b, with a current ratio of 0.65x. … Next Steps: 2688’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Why ENN Energy Holdings Limited (HKG:2688) Is A Dividend Rockstar

ENN Energy Holdings has been growing its dividend quite rapidly, which is exciting. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see ENN Energy Holdings has been growing its earnings per share at 17% a year over the past 5 years. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Companies that are growing earnings tend to be the best dividend stocks over the long term.

Simply Wall St -

How Has ENN Energy Holdings Limited's (HKG:2688) Performed Against The Industry?

Understanding how ENN Energy Holdings Limited (HKG:2688) is performing as a company requires looking at more than just a years' earnings. … Check out our latest analysis for ENN Energy Holdings How Did 2688's Recent Performance Stack Up Against Its Past? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 7.4%, indicating the rate at which 2688 is growing has slowed down.

Simply Wall St -

ENN Energy Holdings Limited (HKG:2688) Earns A Nice Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for ENN Energy Holdings: 0.15 = CN¥6.1b ÷ (CN¥74b - CN¥33b) (Based on the trailing twelve months to December 2018.) Therefore, ENN Energy Holdings has an ROCE of 15%. … With this level of current liabilities, ENN Energy Holdings's ROCE is boosted somewhat. … The Bottom Line On ENN Energy Holdings's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.

Simply Wall St -

Can ENN Energy Holdings Limited's (HKG:2688) ROE Continue To Surpass The Industry Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows ENN Energy Holdings has a return on equity of 15% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Many ENN Energy Holdings Limited (HKG:2688) Shares Did Insiders Buy, In The Last Year?

So shareholders might well want to know whether insiders have been buying or selling shares in ENN Energy Holdings Limited (HKG:2688). … ENN Energy Holdings Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider purchase was by Co-Founder & Chairman Yusuo Wang for HK$3.2b worth of shares, at about HK$80.00 per share.

Simply Wall St -

Is Now An Opportune Moment To Examine ENN Energy Holdings Limited (HKG:2688)?

saw a decent share price growth in the teens level on the SEHK over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

What Kind Of Shareholders Own ENN Energy Holdings Limited (HKG:2688)?

A look at the shareholders of ENN Energy Holdings Limited (HKG:2688) can tell us which group is most powerful. … Generally speaking, as a company grows, institutions will increase their ownership. … ENN Energy Holdings is a pretty big company.

Simply Wall St -

ENN Energy Holdings Limited (HKG:2688): Poised For Long-Term Success?

In December 2018, ENN Energy Holdings Limited (HKG:2688) released its latest earnings announcement, whicha

Simply Wall St -

Did Business Growth Power ENN Energy Holdings's (HKG:2688) Share Price Gain of 106%?

To wit, the ENN Energy Holdings Limited (HKG:2688) share price has flown 106% in the last three years. … During the three years of share price growth, ENN Energy Holdings actually saw its earnings per share (EPS) drop 0.5% per year. … It may well be that ENN Energy Holdings revenue growth rate of 20% over three years has convinced shareholders to believe in a brighter future.

Simply Wall St -

2688 Company Info

Description

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructures, vehicle and ship refuelling stations, and integrated energy stations in the People’s Republic of China. It operates through Construction and Installation, Sales of Piped Gas, Vehicle Gas Refueling Stations, Wholesale of Gas, Sales of Integrated Energy and Services, Sales of Gas Appliances, and Sales of Material 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 involved in the wholesale and retail of compressed natural gas, gas equipment, appliances, and others; and provision of financial services. As of December 31, 2018, the company served 18,522,733 residential customers and 121,105 commercial/industrial customers with installed designed daily capacity of 106,552,583 cubic meters. 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, the People’s Republic of China.

Details
Name: ENN Energy Holdings Limited
2688
Exchange: SEHK
Founded: 1992
HK$83,298,578,227
1,124,137,358
Website: http://www.ennenergy.com
Address: ENN Energy Holdings Limited
Building A,
ENN Industrial Park,
Langfang,
Hebei Province, 065001,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2688 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 10. May 2001
OTCPK XNGS.F Ordinary Shares Pink Sheets LLC US USD 10. May 2001
DB XGH Ordinary Shares Deutsche Boerse AG DE EUR 10. May 2001
MUN XGH Ordinary Shares Boerse Muenchen DE EUR 10. May 2001
SHSC 2688 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 10. May 2001
SZSC 2688 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 10. May 2001
OTCPK XNGS.Y UNSPONSORD ADR Pink Sheets LLC US USD 30. Oct 2008
Number of employees
Current staff
Staff numbers
0
ENN Energy Holdings employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 12:36
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/04/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.