External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>ENN Energy delivered FY22 results with core profit rising by 11.3% YoY.</li><li>Despite a 0.8% YoY decline in gross profit and 24.4% YoY drop in attributable net profit due to economic downturn, exchange fluctuation, and higher gas cost, ENN’s integrated-energy business and VAS business maintain robust growth.</li><li>We believe ENN’s results will improve in 2023 considering that: 1) gas sales growth is expected to rebound to low double digit; 2) dollar margin may improve based on lower gas cost and more effective price-through measures; 3) wholesales gas net profit may further rise; 4) ENN’s IE maintains a robust growth momentum; 5) the Company accelerates product promotion of value added business which shows great growth potential.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ENN Energy delivered FY22 results with core profit rising by 11.3% YoY.Despite a 0.8% YoY decline in gross profit and 24.4% YoY drop in attributable net profit due to economic downturn, exchange fluctuation, and higher gas cost, ENN’s integrated-energy business and VAS business maintain robust growth.We believe ENN’s results will improve in 2023 considering that: 1) gas sales growth is expected to rebound to low double digit; 2) dollar margin may improve based on lower gas cost and more effective price-through measures; 3) wholesales gas net profit may further rise; 4) ENN’s IE maintains a robust growth momentum; 5) the Company accelerates product promotion of value added business which shows great growth potential.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ENN Energy (2688 HK) – Emerging from the downturn

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The launch of Hang Seng Stock Connect Hydrogen Energy Index highlights the growing importance of hydrogen energy use and will stimulate more interest in this emerging sector. </li>
<li>
<a href="https://www.smartkarma.com/entities/weichai-power-co-ltd-h" target="_blank" data-smartkarma-citation="entities:12508:1" rel="noopener">Weichai Power (2338 HK)</a>, <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>, <a href="https://www.smartkarma.com/entities/power-assets-holdings-ltd" target="_blank" data-smartkarma-citation="entities:788:1" rel="noopener">Power Assets (6 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-lead-intelligent-equi-a" target="_blank" data-smartkarma-citation="entities:27971:1" rel="noopener">Wuxi Lead Intelligent Equi-A (300450 CH)</a> and <a href="https://www.smartkarma.com/entities/ningxia-baofeng-energy-group-a" target="_blank" data-smartkarma-citation="entities:29945:1" rel="noopener">Ningxia Baofeng Energy-A (600989 CH)</a> are the five largest constituents. </li>
<li>We believe many of these companies are just generating a tiny portion of revenue and profit from the hydrogen initiatives, but the long-term prospects are positive. </li>
</ul>


The launch of Hang Seng Stock Connect Hydrogen Energy Index highlights the growing importance of hydrogen energy use and will stimulate more interest in this emerging sector. 

Weichai Power (2338 HK), ENN Energy (2688 HK), Power Assets (6 HK), Wuxi Lead Intelligent Equi-A (300450 CH) and Ningxia Baofeng Energy-A (600989 CH) are the five largest constituents. 
We believe many of these companies are just generating a tiny portion of revenue and profit from the hydrogen initiatives, but the long-term prospects are positive. 


China's Hydrogen Economy: Newly Launched Hang Seng Stock Connect Hydrogen Energy Index

<ul>
<li>While <a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> expects better gas dollar margin HoH, there are still high profit uncertainties and its full-year operational guidance does not look exciting.</li>
<li>The expectation of flat to 10% YoY decline in new residential household connections is not encouraging. With 1H FY23 profit only amounted to 42% of consensus, we see downgrade risks.</li>
<li>Despite achieving positive free cash flow, its high gearing of 69.9% (+4pp HoH) is still very stretched relative to peers. We prefer <a href="https://www.smartkarma.com/entities/kunlun-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:10054:1" rel="noopener">Kunlun Energy (135 HK)</a>.</li>
</ul>


While China Gas Holdings (384 HK) expects better gas dollar margin HoH, there are still high profit uncertainties and its full-year operational guidance does not look exciting.
The expectation of flat to 10% YoY decline in new residential household connections is not encouraging. With 1H FY23 profit only amounted to 42% of consensus, we see downgrade risks.
Despite achieving positive free cash flow, its high gearing of 69.9% (+4pp HoH) is still very stretched relative to peers. We prefer Kunlun Energy (135 HK).


China Gas Holdings (384 HK): Still Not Meeting Expectations

<ul><li>ENN Energy (ENN) announced inline 3Q22 operational data. Retail gas sales volume maintained low-single-digit growth and gas dollar margin stabled at RMB0.53/cbm due to increasing cost and shrinking demand during Covid-19 pandemic controls; IE business and value-added segment continued its robust growth.</li><li>Looking ahead, ENN’s mgmt. guided optimistic gas sales volume growth and stabilizing dollar margin in Q4.</li><li>Meanwhile, they maintain strong faith on IE business and value-added business surge.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ENN Energy (ENN) announced inline 3Q22 operational data. Retail gas sales volume maintained low-single-digit growth and gas dollar margin stabled at RMB0.53/cbm due to increasing cost and shrinking demand during Covid-19 pandemic controls; IE business and value-added segment continued its robust growth.Looking ahead, ENN’s mgmt. guided optimistic gas sales volume growth and stabilizing dollar margin in Q4.Meanwhile, they maintain strong faith on IE business and value-added business surge.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ENN Energy (2688 HK) – 3Q22 operational data in line; smooth progress towards net-zero target

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Aug 19th. </li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short interest changes in China Power Intl, HKEx, CLP, Geely, JD.com, ENN Energy.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Aug 19th. 
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short interest changes in China Power Intl, HKEx, CLP, Geely, JD.com, ENN Energy.


HK Short Interest: China Power Intl, HKEx, CLP, Geely

China

ENN Energy Holdings Ltd. distributes natural gas in China.  The Company, through its subsidiaries, invests in, operates, and manages gas pipelines, and sells and distributes piped and bottled gas in China.

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ENN Energy (2688 HK)