ENN ENERGY(02688) 天风证券·2024-09-02 06:03Investment Rating - The investment rating for the company is "Buy" with a target price of 50.9 HKD, maintaining the "Increase" rating for the next six months [1][5]. Core Viewpoints - The company reported a steady growth in retail gas volume and impressive growth in its energy and value-added services [1][4]. - The company achieved a revenue of 54.59 billion HKD in the first half of 2024, a year-on-year increase of 0.9%, while the profit attributable to shareholders decreased by 22.8% to 2.57 billion HKD [2]. - The core profit reached 3.26 billion HKD, with domestic core profit from basic operations increasing by 9.5% to 3.08 billion HKD [2]. Summary by Sections Retail Gas Volume and Profitability - Retail gas volume increased by 4.5% year-on-year to 12.71 billion cubic meters, with industrial and commercial gas sales rising by 5.4% to 9.56 billion cubic meters [3]. - The company expanded its customer base, adding 726.2 thousand cubic meters per day in new industrial and commercial gas connections and 775 thousand new residential users [3]. - The gross profit from retail gas business increased by 9.9% to 3.14 billion HKD [3]. Energy and Value-Added Services - The company signed 707 new energy projects in the first half of the year, with a sales volume of 19.74 billion kWh, representing a 26% year-on-year growth [4]. - The gross profit from energy services grew by 17%, with joint venture contributions increasing by 24.1% [4]. - The smart home business saw a 22.4% increase in revenue to 2.08 billion HKD, with gross profit rising by 23% [4]. Dividend and Debt Structure - The company declared an interim dividend of 0.65 HKD per share, a 1.6% increase year-on-year, with an expected annual payout ratio of approximately 44% [5]. - As of the end of the first half of 2024, the company's interest-bearing debt was approximately 19.83 billion HKD, down from 21.92 billion HKD at the end of 2023, resulting in a net debt ratio of 24.3% [5]. - The company has hedged 83.4% of its long-term USD debt exposure to mitigate foreign exchange risks [5]. Profit Forecast and Valuation - The company expects a gradual recovery in downstream natural gas demand and positive impacts from pricing policies, forecasting net profits of 6.8 billion HKD, 7.59 billion HKD, and 8.27 billion HKD for 2024-2026 [5].