Daily Brief Energy/Materials: Norwest Energy NL, China Internet Investment Finance Holdings, Asian Paints, NEXTracker, JSW Steel Ltd, Marathon Oil and more

• Mineral Resources (MIN AU) has revised its offer from 1 MinRes share for every 1,367 NWE shares to 1 MinRes share for every 1,300 NWE shares. The offer is unconditional. 
• The Norwest Energy NL (NWE AU) Board now recommends the offer. Most of the value uplift is due to the 17.4% increase in MinRes’ share price since 15 December.
• MinRes’ revised off-market takeover offer is fair in comparison to Warrego Energy (WGO AU)’s bids and historical ranges. However, this is predicated on the MinRes maintaining its share price run.

• Bubble-Stock China Internet Investment Finance Holdings (810 HK) (CIIFH) was suspended on the 10 January pursuant to the Hong Kong Code on Takeovers and Mergers. 
• It has now announced a possible voluntary conditional takeover. No price was mentioned and terms remain indeterminate.  
• CIIFH, which invests primarily in listed Hong Kong securities, is trading at an eye-watering 59.5x NAV. 98% downside from here is conceivable. 

• Asian Paints (APNT IN) reported flat year-over-year volumes and flat sales in domestic decorative paints in 3Q FY23. The company’s gross margin recovery is aligned with easing raw material prices.  
• The company attributed the rough quarter to a heavy base from last year’s price increases and a prolonged monsoon, which impacted October volumes.
• We believe that the volumes are lower than what has been reported.  Increasing competition could challenge APNT’s premium valuation.

• NEXTracker (NXT US) , a leading solar tracker and software solutions provider for utility-scale and distributed generation projects, filed for an IPO.
• According to Crunchbase, NEXTracker (NXT US)  has raised ~$548M in funding over four rounds, and investors include Sigma Partners, DBL Partners, SJF Ventures, and American private equity firm TPG.
• We have a favorable view of the upcoming Nextracker IPO and see upside potential to the last round valuation of ~$3B, when the company announced a strategic investment from TPG. 

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.

• JSW Steel Ltd
• Reliance Industries

• Marathon Oil delivered a mixed result for the quarter as it surpassed the revenue expectations of Wall Street.
• It brought 13 wells to sales, among which 8 were 2-mile laterals and the productivity for these extended laterals is very strong.
• We provide the stock of Marathon Oil Corporation with a ‘Hold’ rating with a revision in the target price.