ENN Energy Holdings: A Great Business Trading At A Great Price [Seeking Alpha]
EEN ENERGY HLDGS UNSP/ADR (XNGSY)
NASDAQ:AMEX Investor Relations:
ir.ennenergy.com
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Source: Seeking Alpha
ENN Energy Holdings: A Great Business Trading At A Great Price Summary China's policy to reduce air pollution by using gas will drive a double-digit gas volume growth in China over the next decade. ENN Energy Holdings (ENN), as a monopoly gas distribution and retail company, will benefit from this transition. The company is trading at a PEG of below 1x (0.85x). China’s goal to increase gas usage to combat air pollution has increased demand for gas significantly. According to the IEA ENN is well positioned to capitalise on this coal to gas conversion in China. In FY18, its retail gas sales volume and core profit increased by 20% and 19.8% respectively. The company reported ROE of around 15%. I believe the company will continue to grow its top line and core profit at mid-teen level over the next five years. Source: ENN 2018 Annual Report The firm gets revenue from its city gas operations by charging users one-off connection fees and ongoing gas usage fees. Different tariffs are applied
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