STOCKS | BofA Raises ENN Energy Target Price To HK$63

Bank of America raised its target price on ENN Energy (02688) to HK$63 from HK$60 and kept a Buy rating, according to ETNet. The broker said ENN Energy reported core profit of RMB 3.18 billion for the first half of 2026, down 1.5% year on year, but results were better than its estimates thanks to stronger LNG trading profit and higher gas dollar margins. It said the new HK$3 per share dividend floor policy implies an attractive 6.1% yield for ENN Energy, while its stronger balance sheet and dividend upside are broadly in line with peers. Bank of America estimated ENN Energy's post-interest free cash flow could support a dividend of about HK$4 per share, although it believes the company wants to preserve more financial flexibility until higher gas costs ease. The bank left its 2026-28 earnings per share forecasts unchanged, saying lower value-added business profit was offset by higher gas sales profit.