ENN ENERGY (02688) surged over 3% today. As of press time, the stock was up 2.66% to HK$67.6 with trading volume reaching HK$201 million.

On the news front, Guoyuan International noted that under the privatization proposal, the theoretical total value for ENN ENERGY's parent company ENN's acquisition stands at HK$80 per share, representing approximately a 26% premium over the current price. The HK$80 share price comprises two components: cash payment of HK$24.5 per share and share exchange of 2.94 ENN H-shares per share.

According to the proposal, the mid-range price for ENN H-shares after listing is HK$18.86, corresponding to approximately 10 times the 2025 dynamic PE ratio. Based on the company's stable growth in performance and dividends, there remains potential upside space for H-share valuations in the future.

Overall, the company's privatization plan pricing appears reasonable, fully considering the interests of both existing shareholders and long-term shareholders. The institution pointed out that based on the progress disclosed in company announcements, three prerequisite conditions still need to be fulfilled: registration and filing with relevant mainland Chinese government departments, approval/filing from the China Securities Regulatory Commission and Hong Kong Stock Exchange listing approval, as well as approval from at least two-thirds of independent shareholders through voting. New progress is expected to emerge in the fourth quarter.