Utilities Sector

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Greenko Energy Holdings

• A capitulation-type event for the Hong Kong market is ongoing.
• High-Dividend stocks will provide a safer return regardless of broader market moves.
• A false breakdown below Oct 2022 support will provide a signal for higher-beta exposure.

• The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
• This annual index rebal event usually results in some of the most significant index flow events in Europe every year typically amounting to billions of dollars.
• In this insight, we take an early look the names leading the race to become ADDs/DELs for the upcoming index review in September 2024.

• The GoI is looking to raise US$199m in trimming a portion of its stake in NHPC (NHPC IN). There is an upsize option to increase the deal size to US$279m.
• Assuming that the deal upsizes, the deal here would be a relatively large one to digest at 11 days of the stock’s ADV.
• The deal appears to be well flagged, with the selldown by the GoI appearing to be part of its divestment drive across PSUs in India.

Key points (machine generated)

• Veralto, a recent spin-off from Danaher, is focused on providing water and product quality solutions.
• The company can now concentrate on its core business and leverage its advanced technology and strong global brands.
• With a solid financial profile and a presence in attractive end markets, Veralto is well-positioned to meet the growing demand for water analytics and treatment solutions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Citicore Renewable Energy (CREC PM) is looking to raise around US$200m in its upcoming Philippines IPO. The bookrunners on the deal are UBS, and BDO Capital.
• Citicore Renewable Energy (CREC) is a pure-play renewable energy platform focused on developing and operating renewable energy projects in the Philippines.
• As per Lantau, the firm was the second largest solar energy generator in the Philippines, in terms of installed solar capacity.

• KKR is pursuing the acquisition and delisting of the Portuguese renewable energy company Greenvolt-Energias Renovaveis (GVOLT PL) at €8.30/share in cash, an 11.5% premium to CSP, 95.3% premium to IPO price.
• The price also represents 30% discount to the highest closing share price, but core shareholders (60.86%) seem happy to sell, which will trigger a mandatory offer.
• The offer doesn’t seem generous. Although KKR could sweeten the price to encourage minorities to tender, precedents of Solarpack and Opdenergy do not invite much optimism. Long.

• TLNE is an independent power producer that has emerged from bankruptcy as a public company with the stock not reflecting the intrinsic value of the assets the Company owns
• The reduced leverage profile creates a valuation appeal. However, it is the catalyst from what TLNE could achieve at its Susquehanna nuclear plant that could enhance shareholder value
• TLNE has been private for more than six years and is now trading on the OTC Markets making it likely that many investors have yet to hear about the Company

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Green Energy
• Adani Ports & Special Economic Zone
• ENN Natural Gas
• Greentown China
• Innergex Renewable Energy
• SK Hynix
• Tata Motors ADR

• Iberdrola SA (IBE SM)‘s U.S. subsidiary Avangrid (AGR US) terminated its $8.3 billion deal for PNM Resources (PNM US) as it could not New Mexico regulatory approval by 31 December 2023.
• Iberdrola lost its patience but freed up €11.5 billion from that deal, together with €5.5 billion from assets sold to the Mexican Government. That’s a lot for inorganic growth. 
• PNM, at 9.7x EV/Fwd EBITDA, is trading in line with comparables, thus on a multiples basis there should be limited downside to the share price.