# ENN Energy Holdings (2688.HK)

Canonical: https://gigainvestors.com/s/2688.HK

Analysis as of: 2026-10-16T07:36:40.644Z. Financial observations: FY2000–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 49.54 per share; close as of 2026-10-15.

Estimated value: low HKD 67.53 per share, central HKD 87.92 per share, high HKD 102.02 per share. Buy at or below the central value HKD 87.92 per share. Valuation as of 2026-10-16T07:36:40.644Z; scenarios are not confidence intervals.

Expected annual return: 15.9% at the stated quote. About 15.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.11×

- FY2018: 0.10×

- FY2019: 0.11×

- FY2020: 0.12×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.08×

- FY2024: 0.08×

- FY2025: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 14.4%

- ROIC, second-lowest year: 12.3%

- Typical minus recent gross margin: 3.5 pp

- Typical gross margin (annual median): 15.4%

- Recent gross margin (lower of latest and 3-year median): 11.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.4%

- ROIC including acquisitions, ten-year median: 8.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.9%

- FY2017: 14.8%

- FY2018: 13.8%

- FY2019: 16.2%

- FY2020: 16.5%

- FY2021: 16.8%

- FY2022: 16.1%

- FY2023: 13.7%

- FY2024: 12.3%

- FY2025: 11.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.74×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 24B

- Net income, five-year total: CNY 32B

- Return on incremental invested capital: 8.7%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.3 pp

- Working capital / revenue, final three-year average: 4.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: 0.99×

- FY2023: 0.70×

- FY2024: 0.37×

- FY2025: 0.60×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.9% vs 12.3%

- Per-share earnings: 1.88 to 5.35 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: CNY 34B

- Cumulative retained earnings: CNY 29B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.0%

- Per-share value change: CNY 3.47

- Per-share value, starting three-year median: CNY 1.88

- Per-share value, ending three-year median: CNY 5.35

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 0.3%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 7.7B

- Cumulative net income, 10 years: CNY 52B

- ROIC, first three-year median: 13.9%

- ROIC, last three-year median: 12.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.85

- FY2017: CNY 2.59

- FY2018: CNY 2.51

- FY2019: CNY 5.04

- FY2020: CNY 5.56

- FY2021: CNY 6.86

- FY2022: CNY 5.19

- FY2023: CNY 6.04

- FY2024: CNY 5.35

- FY2025: CNY 5.31

### accounting: pass

- Sloan accruals: -4.3%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.77×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.3%

- FY2017: -5.6%

- FY2018: -7.4%

- FY2019: -7.4%

- FY2020: -3.8%

- FY2021: -2.7%

- FY2022: -4.1%

- FY2023: -2.7%

- FY2024: -4.2%

- FY2025: -4.3%

## Holders

## Price story

Down 66% since Dec 2021 · sales +1.9%

Story as of 2026-10-16T10:00:07.870Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.2% a year for ten years

### Sales · FY2024–2025

sales +1.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 34B 

- FY2017: CNY 48B 

- FY2018: CNY 61B 

- FY2019: CNY 70B 

- FY2020: CNY 72B 

- FY2021: CNY 93B 

- FY2022: CNY 110B 

- FY2023: CNY 114B 

- FY2024: CNY 110B 

- FY2025: CNY 112B 

### Gross margin · FY2025

gross margin 11.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 21.6% 

- FY2017: 17.3% 

- FY2018: 15.7% 

- FY2019: 16.1% 

- FY2020: 17.2% 

- FY2021: 15.1% 

- FY2022: 14.3% 

- FY2023: 12.6% 

- FY2024: 12.2% 

- FY2025: 11.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are CNY 111.9 billion.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2025-12-31 (filed 2026-10-16T07:36:40.644Z); FY2025: revenue 111905000000; grossProfit 13292000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2688.HK: ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Smart Home Business segments. The company distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refueling stations; and provides services related to low-carbon integrated solutions. It is also involved in the integrated energy business; retail of gas pipelines and intelligent equipment; transportation of oil products and gas; and sourcing and sale of LNG, as well as wholesale and retail of LNG, CNG, gas facilities, equipment, appliances, and others; and provision of financial services. It serves residential, commercial, and industrial customers. The company was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. ENN Energy Holdings Limited was founded in 1989 and is headquartered in Langfang, China.

### Why customers stay

Margins ranged from 11.9% to 12.6% during 2023–25; it earns 14.4% on its capital.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2023-12-31 (filed 2026-10-16T07:36:40.644Z); FY2023: grossProfit / revenue = 12.6%.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2024-12-31 (filed 2026-10-16T07:36:40.644Z); FY2024: grossProfit / revenue = 12.2%.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2025-12-31 (filed 2026-10-16T07:36:40.644Z); FY2025: grossProfit / revenue = 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:40.644Z); 10-year return on capital observations [[2016,0.13890210491380162],[2017,0.1483174607542382],[2018,0.13778361862242308],[2019,0.16206063587890054],[2020,0.16535083437141868],[2021,0.16838235756205328],[2022,0.16122124098403795],[2023,0.136723072362826],[2024,0.12294510868357059],[2025,0.11657631711505306]]; median 0.14360978283401993. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

By the end of 2025, 71.6% of residential gas volumes had completed gas price adjustment.

- Source: https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0428/2026042802499.pdf (filed ); It also actively responded to the national policy direction of rationalising residential gas pricing and steadily promoted the price adjustment processes. By the end of 2025, 71.6% of residential gas volumes had completed gas price adjustment. Number of City-gas Projects I 19 ANNUAL REPORT 2025 Total Natural Gas Sales Volume (million m3) 36,793 264 In 2025, the Group’s newly added C/I customers contributed an installed designed daily capacity of 13.44 million cubic metres, bringing the cumulative installed designed daily capacity for C/I customers to 229 million cubic metres.

### Where the cash goes

Reinvests 33.7% of cash earnings; earns 8.7% on new investment.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2016-12-31 (filed 2026-10-16T07:36:40.644Z); FY2016: growth capex 1461392672.455129; upkeep 1827607327.544871; owner earnings 1387392672.455129. Growth capex / owner earnings = 1.0533374591557052.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2017-12-31 (filed 2026-10-16T07:36:40.644Z); FY2017: growth capex 3601000000; upkeep 1118000000; owner earnings 2802000000. Growth capex / owner earnings = 1.2851534618129907.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2018-12-31 (filed 2026-10-16T07:36:40.644Z); FY2018: growth capex 4966000000; upkeep 1286000000; owner earnings 2818000000. Growth capex / owner earnings = 1.7622427253371185.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2019-12-31 (filed 2026-10-16T07:36:40.644Z); FY2019: growth capex 5507648458.605943; upkeep 2018351541.3940573; owner earnings 5325648458.605943. Growth capex / owner earnings = 1.0341742421443343.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2020-12-31 (filed 2026-10-16T07:36:40.644Z); FY2020: growth capex 813439209.0994291; upkeep 4855560790.900571; owner earnings 3423639209.099429. Growth capex / owner earnings = 0.23759489812403456.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2021-12-31 (filed 2026-10-16T07:36:40.644Z); FY2021: growth capex 4135000000; upkeep 2263000000; owner earnings 7684000000. Growth capex / owner earnings = 0.5381311816762103.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2022-12-31 (filed 2026-10-16T07:36:40.644Z); FY2022: growth capex 4310000000; upkeep 2603000000; cash acquisitions 480000000; owner earnings 5800969837.935174. Growth capex plus acquisitions / owner earnings = 0.8257239968179142.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2023-12-31 (filed 2026-10-16T07:36:40.644Z); FY2023: growth capex 1950553112.950138; upkeep 5036446887.049862; cash acquisitions 519000000; owner earnings 4738189397.0341625. Growth capex plus acquisitions / owner earnings = 0.5212018570840452.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2024-12-31 (filed 2026-10-16T07:36:40.644Z); FY2024: growth capex 0; upkeep 6734000000; cash acquisitions 25000000; owner earnings 2186600000. Growth capex plus acquisitions / owner earnings = 0.01143327540473795.

- Source: https://eodhd.com/api/fundamentals/XGH.STU.json#2025-12-31 (filed 2026-10-16T07:36:40.644Z); FY2025: growth capex 990604253.0404139; upkeep 6101395746.959586; cash acquisitions 202000000; owner earnings 3537557952.506317. Growth capex plus acquisitions / owner earnings = 0.3371264214047626.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:40.644Z); Incremental return on capital 0.08705068292924957, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:40.644Z); Dividend observations: [[2016,705000000],[2017,775000000],[2018,952000000],[2019,1176000000],[2020,1719000000],[2021,2827000000],[2022,2657000000],[2023,2977000000],[2024,3015000000],[2025,3059000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 35.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2688.HK SharesStats.PercentInsiders = 35.257 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 3.2% yearly over ten years; actual growth was 5.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:40.644Z); Ten-year compound average after fade. Initial solved rate -0.057268697183920525. Price 49.54; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.8806594131345031 → FY2025 3.1816729893272426. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 36.50 per share

- 2016-11: HKD 35.70 per share

- 2016-12: HKD 31.90 per share

- 2017-01: HKD 38.40 per share

- 2017-02: HKD 37.50 per share

- 2017-03: HKD 43.75 per share

- 2017-04: HKD 42.20 per share

- 2017-05: HKD 41.00 per share

- 2017-06: HKD 47.10 per share

- 2017-07: HKD 53.05 per share

- 2017-08: HKD 50.35 per share

- 2017-09: HKD 56.60 per share

- 2017-10: HKD 57.20 per share

- 2017-11: HKD 56.95 per share

- 2017-12: HKD 55.75 per share

- 2018-01: HKD 60.40 per share

- 2018-02: HKD 60.30 per share

- 2018-03: HKD 70.10 per share

- 2018-04: HKD 73.80 per share

- 2018-05: HKD 80.75 per share

- 2018-06: HKD 77.15 per share

- 2018-07: HKD 79.85 per share

- 2018-08: HKD 71.50 per share

- 2018-09: HKD 68.00 per share

- 2018-10: HKD 66.65 per share

- 2018-11: HKD 70.25 per share

- 2018-12: HKD 69.45 per share

- 2019-01: HKD 74.90 per share

- 2019-02: HKD 81.00 per share

- 2019-03: HKD 75.90 per share

- 2019-04: HKD 74.10 per share

- 2019-05: HKD 70.50 per share

- 2019-06: HKD 76.00 per share

- 2019-07: HKD 81.25 per share

- 2019-08: HKD 89.50 per share

- 2019-09: HKD 81.10 per share

- 2019-10: HKD 89.80 per share

- 2019-11: HKD 85.00 per share

- 2019-12: HKD 85.15 per share

- 2020-01: HKD 91.10 per share

- 2020-02: HKD 86.35 per share

- 2020-03: HKD 75.05 per share

- 2020-04: HKD 87.60 per share

- 2020-05: HKD 90.40 per share

- 2020-06: HKD 87.20 per share

- 2020-07: HKD 93.90 per share

- 2020-08: HKD 86.00 per share

- 2020-09: HKD 84.40 per share

- 2020-10: HKD 97.95 per share

- 2020-11: HKD 102.70 per share

- 2020-12: HKD 113.80 per share

- 2021-01: HKD 120.20 per share

- 2021-02: HKD 118.90 per share

- 2021-03: HKD 124.70 per share

- 2021-04: HKD 132.40 per share

- 2021-05: HKD 142.70 per share

- 2021-06: HKD 147.80 per share

- 2021-07: HKD 162.50 per share

- 2021-08: HKD 153.90 per share

- 2021-09: HKD 128.40 per share

- 2021-10: HKD 134.70 per share

- 2021-11: HKD 146.40 per share

- 2021-12: HKD 146.80 per share

- 2022-01: HKD 123.60 per share

- 2022-02: HKD 113.40 per share

- 2022-03: HKD 117.50 per share

- 2022-04: HKD 105.90 per share

- 2022-05: HKD 120.30 per share

- 2022-06: HKD 128.90 per share

- 2022-07: HKD 127.90 per share

- 2022-08: HKD 114.40 per share

- 2022-09: HKD 105.00 per share

- 2022-10: HKD 78.05 per share

- 2022-11: HKD 109.50 per share

- 2022-12: HKD 109.60 per share

- 2023-01: HKD 118.00 per share

- 2023-02: HKD 111.50 per share

- 2023-03: HKD 107.60 per share

- 2023-04: HKD 107.00 per share

- 2023-05: HKD 91.00 per share

- 2023-06: HKD 97.60 per share

- 2023-07: HKD 93.75 per share

- 2023-08: HKD 61.50 per share

- 2023-09: HKD 65.00 per share

- 2023-10: HKD 59.75 per share

- 2023-11: HKD 54.20 per share

- 2023-12: HKD 57.50 per share

- 2024-01: HKD 57.80 per share

- 2024-02: HKD 64.35 per share

- 2024-03: HKD 60.30 per share

- 2024-04: HKD 67.65 per share

- 2024-05: HKD 71.70 per share

- 2024-06: HKD 64.35 per share

- 2024-07: HKD 54.90 per share

- 2024-08: HKD 50.90 per share

- 2024-09: HKD 60.05 per share

- 2024-10: HKD 54.70 per share

- 2024-11: HKD 52.25 per share

- 2024-12: HKD 55.85 per share

- 2025-01: HKD 52.55 per share

- 2025-02: HKD 51.70 per share

- 2025-03: HKD 64.20 per share

- 2025-04: HKD 61.55 per share

- 2025-05: HKD 62.70 per share

- 2025-06: HKD 62.70 per share

- 2025-07: HKD 64.05 per share

- 2025-08: HKD 62.50 per share

- 2025-09: HKD 64.35 per share

- 2025-10: HKD 67.65 per share

- 2025-11: HKD 70.95 per share

- 2025-12: HKD 69.20 per share

- 2026-01: HKD 67.35 per share

- 2026-02: HKD 68.80 per share

- 2026-03: HKD 63.35 per share

- 2026-04: HKD 61.10 per share

- 2026-05: HKD 54.90 per share

- 2026-06: HKD 40.46 per share

- 2026-07: HKD 46.94 per share

- 2026-08: HKD 49.66 per share

- 2026-09: HKD 48.70 per share

- 2026-10: HKD 49.54 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 36.84 per share, central HKD 49.57 per share, high HKD 56.98 per share

- FY2017: low HKD 49.72 per share, central HKD 67.40 per share, high HKD 77.69 per share

- FY2018: low HKD 57.75 per share, central HKD 79.16 per share, high HKD 91.63 per share

- FY2019: low HKD 64.31 per share, central HKD 89.04 per share, high HKD 103.44 per share

- FY2020: low HKD 55.93 per share, central HKD 76.66 per share, high HKD 88.73 per share

- FY2021: low HKD 83.44 per share, central HKD 116.10 per share, high HKD 135.11 per share

- FY2022: low HKD 87.19 per share, central HKD 122.25 per share, high HKD 142.66 per share

- FY2023: low HKD 91.65 per share, central HKD 127.97 per share, high HKD 149.13 per share

- FY2024: low HKD 65.23 per share, central HKD 73.52 per share, high HKD 84.56 per share

- FY2025: low HKD 67.53 per share, central HKD 87.92 per share, high HKD 102.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.