Steady Growth Outlook Intact; Await Better Entry Point
With the impressive 25% yoy growth in retail gas sales in 5M21, ENN maintained its retail gas sales growth of not less than 15% for 2021 unchanged, which we consider rather conservative. Dollar margins are expected to remain steady with near-term volatility in LNG spot prices. ENN’s valuation has rallied to 1.5SD above its historical mean level, which we consider as not very appealing. Maintain HOLD with a higher target price of HK$140.00.