ENN Energy Holdings (2688.HK)
Utilities · HKEX · Hong Kong
Fundamentals
Valuation and ratings
ENN Energy Holdings trades at HK$42.38, which is 90% below the HK$80.41 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 36 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 6.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About ENN Energy Holdings
ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Smart Home Business segments. The company distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refueling stations; and provides services related to low-carbon integrated solutions. It is also involved in the integrated energy business; retail of gas pipelines and intelligent equipment; transportation of oil products and gas; and sourcing and sale of LNG, as well as wholesale and retail of LNG, CNG, gas facilities, equipment, appliances, and others; and provision of financial services. It serves residential, commercial, and 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 1989 and is headquartered in Langfang, China.
2688.HK passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is ENN Energy Holdings (2688.HK) undervalued?
Against our discounted cash flow estimate of HK$80.41, 2688.HK at HK$42.38 is 90% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 2688.HK's P/E ratio?
2688.HK trades at 6.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.