Daiwa has released a research report providing its assessment on recent developments concerning the companies.

The report notes that Enn Natural Gas Co.,Ltd. (600803.SH) has confirmed that its $12 billion privatization proposal for ENN ENERGY (02688) has been terminated.

Daiwa indicates that a key point now is that Enn Natural Gas has concurrently announced its intention to accumulate ENN ENERGY shares in the open market.

Considering a dividend yield of approximately 6% and a year-to-date share price decline of around 35%, the report suggests that while short-term market sentiment has been negatively impacted, the fundamental downside from current levels is believed to be limited.

Consequently, Daiwa has assigned an "outperform" rating to the stock.