ENN ENERGY(02688) 交银国际·2024-10-28 06:58Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 65.10 [2][8]. Core Insights - The company's Q3 operational data aligns with expectations, with retail gas sales volume increasing by 5.5% year-on-year, driven by residential and commercial sales growth of 4.6% and 6.2% respectively [1]. - The management anticipates that the overall sales volume for retail gas will grow by 5% and segment gross profit will increase by 10% for the full year of 2024 [1]. - The diversified energy segment is expected to achieve a year-on-year growth of 20% for the full year, supported by new projects transitioning to operations and additional management services contributing to revenue [2]. Summary by Relevant Sections Retail Gas Sales - Q3 retail gas sales volume reached 5,793 million cubic meters, with residential sales at 714 million cubic meters and commercial sales at 4,973 million cubic meters [4]. - The gross margin for gas sales was reported at RMB 0.54 per cubic meter, consistent with the annual guidance [1][5]. Capital Expenditure and Financials - Capital expenditure for the first three quarters was RMB 4.6 billion, significantly below the annual guidance of RMB 8 billion, with management prioritizing debt repayment over additional buybacks or dividends [2]. - The LNG trading segment reported a pre-tax profit of RMB 280 million for the first three quarters, within the guidance range of RMB 200-300 million [2]. Future Guidance - The company has set ambitious targets for 2024, including a 20-30% growth in energy usage scale and a 20-30% increase in smart home business gross profit [4]. - The annual target for new commercial users is set at 1,200 to 1,400 million cubic meters per day, with residential user additions expected to be between 140,000 to 160,000 households [4].