ENN-NG(SH:600803) Dongguan Securities·2025-08-28 09:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [6]. Core Insights - The company's performance in H1 2025 was impacted by warm winter weather, leading to a slight decline in revenue and net profit. The revenue was CNY 65.991 billion, down 1.47% year-on-year, while the net profit was CNY 2.408 billion, down 4.82% year-on-year [4]. - The company has seen growth in retail gas volume, with a 1.9% year-on-year increase to 12.95 billion cubic meters in H1 2025. The commercial user gas volume grew by 2.4%, while the residential user gas volume increased by 1.3% [4]. - The company is actively promoting price adjustments, with 64% of its enterprises having completed price adjustments by the end of June 2025 [4]. - The company is expanding its infrastructure operations through the establishment of a bonded LNG tank in Zhoushan, which enhances its operational capacity and allows for new business opportunities [4]. - The company is accelerating its development in photovoltaic and energy storage sectors, with significant new installations in H1 2025 [4]. - The earnings per share (EPS) forecasts for 2025-2027 are CNY 1.48, CNY 1.62, and CNY 1.79, respectively, with corresponding price-to-earnings (PE) ratios of 13x, 12x, and 11x [4][5]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of CNY 65.991 billion, a decrease of 1.47% year-on-year, and a net profit of CNY 2.408 billion, down 4.82% year-on-year [4]. - Financial expenses were CNY 0.352 billion, showing a decrease of 29.87% year-on-year, indicating strong cost control [4]. Retail Gas Volume - The company achieved a retail gas volume of 12.95 billion cubic meters in H1 2025, marking a 1.9% increase year-on-year. The commercial user gas volume was 9.79 billion cubic meters, up 2.4%, while the residential user gas volume reached 3.04 billion cubic meters, up 1.3% [4]. Infrastructure Development - The company has established a bonded LNG tank in Zhoushan, which has begun operations and is expected to enhance its infrastructure capabilities significantly [4]. Renewable Energy Initiatives - In H1 2025, the company added 324.46 MW of photovoltaic capacity and 45.75 MWh of energy storage capacity, focusing on low-carbon energy solutions for small and medium-sized enterprises [4].