Daily Brief Utilities: ENN Energy, Jersey Electricity PLC and more

• On the 26th March, ENN Energy (2688 HK) announced a cash/scrip Offer from ENN Natural Gas (600803 CH) (ENN-NG), its largest shareholder.
• The pushback is that the scrip portion pivots off the value of newly-listed ENN-NG H-shares. And the IFA’s theoretical assessment on such leaves a lot to be desired.
• A redacted version of ENN-NG’s application proof is now out. Curiously, the share ratio – new ENN-NG H Shares for each ENN shares – is noticeably absent

Jersey Electricity (JEL) recently released its H125 results, reporting group revenue growth of 9% y-o-y to £82.3m (H124: £75.6m), mainly due to the performance of its energy business. PBT remained relatively flat year-on-year at £10.5m, while cost of sales and operating costs increased 12% y-o-y, reflecting continuing inflationary pressures. Net cash on the balance sheet contracted to £8.5m from £16.7m last year, driven by a rise in capital expenditure as part of JEL’s £180m five-year strategic investment plan to improve its energy network and services. We maintain our previous estimates and valuation of 708p per share.