ENN Energy Holdings Limited (2688.HK) stock analysis

In our weekly check, ENN Energy Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5.

About ENN Energy Holdings Limited

ENN Energy Holdings Limited is an Utilities company (Regulated Gas) based in China, listed on HKSE as 2688.HK.

What our checks show for 2688.HK

Red flags

• Operating profit covers interest only 1.9 times: a weak year could make the payments hard.
• The net margin fell by 3.1 points over 5 years, to 5.3%: the company keeps less of each sale as profit.
• The gross margin fell by 3.2 points, to 11.9%: costs are rising faster than prices.
• The dividend takes 345% of profit: little cushion if profit falls.
• The stock has fallen as much as 77% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 3.8% a year of growth in revenue.
• Revenue grew only 0.6% a year over the last 3 years.
• The net margin is only 5.3%: little room if costs rise.
• Free cash flow is only 3% of revenue.
• The stock is still below its previous peak.

Strengths

• Net debt is only 1x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 1.77x net profit: the profit arrives as real cash.
• Actively traded: about 3.7 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

ATO · NTGY.MC · 0003.HK · NI · SRG.MI · ALA.TO

Questions

What grade does ENN Energy Holdings Limited (2688.HK) have?

In our weekly check, ENN Energy Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2688.HK stock?

This week's biggest flags for ENN Energy Holdings Limited: Weak interest cover, Margins falling, Gross margin falling. In total 10 of 25 checks show a warning or a red flag.

What does ENN Energy Holdings Limited do?

ENN Energy Holdings Limited is an Utilities company (Regulated Gas) based in China, listed on HKSE as 2688.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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