Utilities Sector

• Dala Energi is facing a bid from Nordion Energi for a complex transaction, offering significant upside potential
• Dala Energi has seen a 94% increase in share price year-to-date, with at least a 23% potential upside remaining
• The transaction is expected to be completed by summer 2025, providing an annualized return above 23% based on conservative assumptions

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• On the All Thoughts podcast, Tracy Alloway and Joe discuss Tracy’s new solar panel and energy challenges during a snowstorm.
• Duke Energy’s Senior VP of Pricing and Customer Solutions discusses the complexities of energy pricing, renewable energy, and the future of the grid.

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• Brookfield acquired a 53.12% stake in Neoen for €39.85/share, triggering a mandatory tender offer for remaining shares and bonds, aiming for a squeeze-out and delisting Neoen.
• Regulatory approvals were secured from the EU, France, the US, and Australia, addressing antitrust, foreign investment laws, and energy security concerns.
• My PT remains €39.85, in line with the price offered by Brookfield and its partners, which I believe is fair. Completion is expected in Q1 2025. Gross spread is 0.33%.Tender.

• Bragg Gaming Group is an illiquid small-cap company undergoing a strategic review, with potential upside of over 40% if a deal is reached
• The stock price currently reflects low odds of a transaction, but resolution is expected by the end of the year
• Despite being covered in a comprehensive write-up four years ago, recent events have led to a collapse in the stock price, creating a favorable setup for investors in the online casino, sports betting, and lottery industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• In this insight, we take a look at the final rankings for the HSCEI potential ADDs and potential DELs for the index rebal event in March 2025.
• We expect one change for the HSCEI index in March 2025 and capping flows of US$136mn one-way.

• JSW Energy faces a significant regulatory setback with the rejection of its proposed tariff for a 500 MW/1000 MWh Battery Energy Storage System project by the Central Electricity Regulatory Commission. 
• This decision highlights the vulnerability of renewable energy ventures to regulatory changes, potentially leading to project delays, tariff renegotiations, and broader market uncertainty, which could impact India’s renewable energy goals.
• The impact of this could be multiple ripple effects including project delays, financial loss, viability concerns of battery storage business.

• PPL Corporation reported its third-quarter 2024 financial results, showing a mixed performance amid ongoing operational initiatives and strategic planning.
• The company posted GAAP earnings of $0.29 per share, slightly down from $0.31 per share in the same quarter of the previous year.
• Adjusted for special items, earnings from ongoing operations were $0.42 per share, a decrease of $0.01 compared to the third quarter of 2023.

• Contact Energy (CEN NZ) has outperformed Mercury NZ Ltd (MCY NZ) over the last month off the back of expected passive flows in February.
• Despite the outperformance, Contact Energy (CEN NZ) trades at a lower forward PE compared to Mercury NZ Ltd (MCY NZ), though it does trade at a higher Price to Book. 
• There could be large passive inflows to Contact Energy (CEN NZ) and large passive outflows from Mercury NZ Ltd (MCY NZ) in February.

• In a move that could significantly impact the solar power industry, TPG Rise Climate, the climate-focused investment arm of buyout firm TPG, is reportedly in advanced talks to acquire Altus Power (AMPS).
• Altus Power, a leader in commercial-scale solar solutions, has made substantial strides in delivering clean energy to commercial property owners and residential customers across the U.S. With over 1 gigawatt of operating solar assets, the company has become a cornerstone in the renewable energy sector, leveraging its robust portfolio to generate consistent revenue and optimize asset performance.
• This potential acquisition comes at a pivotal moment as TPG looks to expand its climate-focused investments and capitalize on the growing demand for clean energy solutions.

• Shandong Hi-Speed Holdings Gro (412 HK) completed the acquisition of CITIC Securities 13.52% stake in Shandong Hi-Speed New Energy G (1250 HK) at HK$1.78 per share. 
• SPA completion triggers a mandatory unconditional offer at HK$1.78 per share. The composite document will be sent, and the offer will open by 28 January. 
• At the last close and for an early February payment, the gross and annualised spread of the offer is 2.9% and 30.2%, respectively.

• Passive global index trackers sold Adani Green Energy (ADANIGR IN) in November following a big drop in free float for the stock.
• There could be more selling in Adani Green Energy in February as the stock is deleted from the same large global index due to failing free float market cap thresholds.
• With the company at the center of the U.S indictment focused on bribery charges, active foreign and local investors will be wary of buying the stock.

• Back on the 27th November, Shandong Hi-Speed Holdings (412 HK) (SDHG) entered into SPAs with two Citic Securities (6030 HK)-backed funds, holding 13.52% in Shandong Hi-Speed New Energy (1250 HK).
• The SPAs were completed on the 27th December, elevating SDHG’s stake to 56.97%, triggering an unconditional MGO. The Offer Price is HK$1.78/share, the same as that under the SPAs.
• The premium to last close is just 7.23%. But don’t expect a bump in terms. SDHG intends to maintain Shandong Hi-Speed New Energy’s listing. 

• Adani Transmission (ADANIT IN) is one of the largest private player in transmission.
• The management has guided for 20% YOY revenue & EBITDA growth for long term
• Alongside it is trying to diversify from transmission & distribution which are regulated by the government and entered in Smart Meters, Cooling Services etc.

• Aegis Logistics (AGIS IN)  or ALL is an integrated logistics and supply chains provider to the oil, gas, petroleum and chemical players. 
• The company is currently on a capex spree, after joining hands with Royal Vopak to augment its terminals business.
• While the business possesses good cash conversion, one should be bothered by some doubtful accounting with respect to capitalization policy, receivable provisioning, etc which might have beneficial impact on bottom-line.

• The H share market continues to be the top performing market in Asia in 2024.  The HSCEI has outperformed all Asian markets on a USD basis.
• China Longyuan Power (916 HK) was rated a BUY at JP Morgan with the company hosting a roadshow to discuss its future growth strategy. 
• China Resources Beverage (2460 HK) was initiated as a BUY at CMB International as the company rapidly expands into the ready-to-drink category with teas and sports drinks.