Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

ENN Energy Holdings Ltd. distributes natural gas in China.  The Company, through its subsidiaries, invests in, operates, and manages gas pipelines, and sells and distributes piped and bottled gas in China.

<ul>
<li>Back on the 26th March, <strong><a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a></strong> announced a cash/scrip Offer from <strong><a href="https://www.smartkarma.com/entities/enn-natural-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:16456:1" rel="noopener">ENN Natural Gas (600803 CH)</a></strong>, its largest shareholder.</li>
<li>Investors hoping for a clean (er) exit, or one where the back-end terms were clearly defined, will be disappointed. And minorities are active in this name.</li>
<li>The Offer pivots on where the newly-listed H-shares trade. The IFA's assessment on the theoretical value of these H-shares is unrealistic. </li>
</ul>


Back on the 26th March, ENN Energy (2688 HK) announced a cash/scrip Offer from ENN Natural Gas (600803 CH), its largest shareholder.
Investors hoping for a clean (er) exit, or one where the back-end terms were clearly defined, will be disappointed. And minorities are active in this name.
The Offer pivots on where the newly-listed H-shares trade. The IFA's assessment on the theoretical value of these H-shares is unrealistic. 


Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

Spruce Power Holding Corporation is an owner and operator of distributed solar energy assets. The Company provides subscription-based services for homeowners and small businesses to own and maintain rooftop solar and battery storage, as well as offers as-a-service model to access new technology without making a significant upfront investment and incurring maintenance costs.

<ul><li>Announced 4Q24 results. Spruce is a leading owner- operator of residential solar power purchase agreements (PPAs) and solar lease agreements (SLAs).</li><li>The company grows through the acquisition of mature portfolios. Spruce now owns the cash flow from ~85k home solar assets and contracts, up from 21k in 2018.</li><li>The company offers a “Power-as-a-Service” business model and believes its own in-house technology-driven solar servicing platform is the most comprehensive on the market and hard to replicate. </li></ul>

Announced 4Q24 results. Spruce is a leading owner- operator of residential solar power purchase agreements (PPAs) and solar lease agreements (SLAs).The company grows through the acquisition of mature portfolios. Spruce now owns the cash flow from ~85k home solar assets and contracts, up from 21k in 2018.The company offers a “Power-as-a-Service” business model and believes its own in-house technology-driven solar servicing platform is the most comprehensive on the market and hard to replicate. 

Spruce Power Holding Corporation - 4Q24 Results

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Maynilad Water Services / Equity Capital Markets

Maynilad Water Services, Inc. provides water and wastewater services. The Company maintains water and sewer mains for the provision of municipal water services. Maynilad Water Services serves cities and municipalities in Philippines.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maynilad-water-services-inc" target="_blank" data-smartkarma-citation="entities:44852:1" rel="noopener">Maynilad Water Services (MYNLD PH)</a>  (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.</li>
<li>MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



Maynilad Water Services (MYNLD PH)  (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.
MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.
In this note, we talk about the not-so-positive aspects of the deal.


Maynilad Water Services Pre-IPO - The Negatives - Growth Hasn’t Always Been as Strong

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>We calculated that after the privatisation of <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>, the EPS of <a href="https://www.smartkarma.com/entities/enn-natural-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:16456:1" rel="noopener">ENN Natural Gas (600803 CH)</a> will be Rmb1.94 for FY25F and Rmb2.11 for FY26F.</li>
<li>By using ENN Energy's undisturbed PER (with and without a 10% discount) and <a href="https://www.smartkarma.com/entities/kunlun-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:10054:1" rel="noopener">Kunlun Energy (135 HK)</a>'s ex-cash PER, ENN-NG H-share is worth 6.8-7.9x for FY25F and 6.3-7.2x for FY26F.</li>
<li>ENN-NG H-share is hence valued at HK$14.11-16.37, implying that ENN Energy's value under the privatisation proposal is HK$66.02-72.67, which is lower than Somerly's HK$80 estimate.</li>
</ul>


We calculated that after the privatisation of ENN Energy (2688 HK), the EPS of ENN Natural Gas (600803 CH) will be Rmb1.94 for FY25F and Rmb2.11 for FY26F.
By using ENN Energy's undisturbed PER (with and without a 10% discount) and Kunlun Energy (135 HK)'s ex-cash PER, ENN-NG H-share is worth 6.8-7.9x for FY25F and 6.3-7.2x for FY26F.
ENN-NG H-share is hence valued at HK$14.11-16.37, implying that ENN Energy's value under the privatisation proposal is HK$66.02-72.67, which is lower than Somerly's HK$80 estimate.


ENN Energy (2688 HK): Valuing ENN Natural Gas H-Share

Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Kontrol Technologies Corp. provides energy efficiency and technology solutions. The Company performs energy audits and assessment for multi-residential, commercial, and institutional businesses. Kontrol Energy serves customers worldwide.

<ul>
<li>Kontrol Technologies reported Q4 financial results that were in line with our expectations.</li>
<li>Revenue came in at $1.7M vs. our estimate of $1.8M and adjusted EBITDA was ($0.3M) vs. our estimate of ($0.2M).</li>
<li>KNR repurchased 1.8M shares in 2024 and 0.7M shares in 2025 thus far, decreasing its share count by 4% since Q4/23.</li>
</ul>


Kontrol Technologies reported Q4 financial results that were in line with our expectations.
Revenue came in at $1.7M vs. our estimate of $1.8M and adjusted EBITDA was ($0.3M) vs. our estimate of ($0.2M).
KNR repurchased 1.8M shares in 2024 and 0.7M shares in 2025 thus far, decreasing its share count by 4% since Q4/23.


KNR: Solid Q4; Still Trading at a Discount to Net Cash

Utilities
Insights in the Utilities Space

ENN Energy (2688 HK): This Is An Avoid

The Offer pivots on where the newly-listed H-shares trade. The IFA's assessment on the theoretical value of these H-shares is unrealistic.

David Blennerhassett

Spruce Power Holding Corporation - 4Q24 Results

Announced 4Q24 results. Spruce is a leading owner- operator of residential solar power purchase agreements (PPAs) and solar lease agreements (SLAs).

Water Tower Research

Maynilad Water Services Pre-IPO - The Negatives - Growth Hasn’t Always Been as Strong

Maynilad Water Services (MYNLD PH) (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO. In this note, we talk about the not...

Sumeet Singh

KNR: Solid Q4; Still Trading at a Discount to Net Cash

Revenue came in at $1.7M vs. our estimate of $1.8M and adjusted EBITDA was ($0.3M) vs. our estimate of ($0.2M). KNR repurchased 1.8M shares in 2024...

Atrium Research

ENN Energy (2688 HK): This Is An Avoid

The Offer pivots on where the newly-listed H-shares trade. The IFA's assessment on the theoretical value of these H-shares is unrealistic.

David Blennerhassett

Spruce Power Holding Corporation - 4Q24 Results

Announced 4Q24 results. Spruce is a leading owner- operator of residential solar power purchase agreements (PPAs) and solar lease agreements (SLAs).

Water Tower Research

Maynilad Water Services Pre-IPO - The Negatives - Growth Hasn’t Always Been as Strong

Maynilad Water Services (MYNLD PH) (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO. In this note, we talk about the not...

Sumeet Singh

ENN Energy (2688 HK): Valuing ENN Natural Gas H-Share

With privatisation of ENN Energy, ENN-NG H-share is valued at HK$14.11-16.37, implying ENN Energy's value at HK$66.02-72.67, lower than Somerly's...

Osbert Tang, CFA

KNR: Solid Q4; Still Trading at a Discount to Net Cash

Revenue came in at $1.7M vs. our estimate of $1.8M and adjusted EBITDA was ($0.3M) vs. our estimate of ($0.2M). KNR repurchased 1.8M shares in 2024...

Atrium Research