CLSA has released a research report stating that the withdrawal of the privatization proposal by ENN ENERGY's (02688) parent company, ENN Natural Gas, has triggered recent share price declines. The firm believes the share price has now fallen to an attractive level, forecasting a 2026 dividend yield of 7%. The target price has been reduced from HK$75 to HK$58.5. The current valuation, equivalent to a forecasted 2023 price-to-earnings ratio of 6.3 times, is deemed appealing. CLSA maintains its "Outperform" rating on the stock.

The firm has lowered its profit forecasts for ENN ENERGY for the current and next fiscal years by 5% and 22%, respectively. CLSA projects that ENN ENERGY's net profit for 2026 will grow by approximately 18% year-on-year to around RMB 6.9 billion, primarily benefiting from a contribution of about RMB 1.4 billion in gross profit from wholesale gas operations.