September 16, 2019 - 9:43 AM EDT
ENN Energy: Positive On Diversification Beyond Gas Distributio,n But Recent Proposed Share Transfer Creates Overhang

ENN Energy: Positive On Diversification Beyond Gas Distributio,n But Recent Proposed Share Transfer Creates Overhang

Elevator Pitch

Hong Kong-listed Chinese gas distributor ENN Energy Holdings Limited (XNGSY) (XNGSF) [2688:HK] currently trades at 15.1 times consensus forward FY2019 P/E representing a premium to its historical five-year average forward P/E of approximately 13 times. The valuation premium is partly justified by its diversification beyond its core gas distribution business to integrated energy and value-added services, its gas procurement advantage with its parent's LNG terminal and M&A opportunities in the gas distribution business.

However, with ENN Energy's share price hitting an all-time high of HK$89.70 in August 2019 and

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Source: SeekingAlpha (September 16, 2019 - 9:43 AM EDT)