In today’s briefing:
- ENN Energy (2688 HK): Valuing ENN Natural Gas H-Share
- KNR: Solid Q4; Still Trading at a Discount to Net Cash
- Maynilad Water Services Pre-IPO – The Negatives – Growth Hasn’t Always Been as Strong
ENN Energy (2688 HK): Valuing ENN Natural Gas H-Share
- 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.
KNR: Solid Q4; Still Trading at a Discount to Net Cash
- 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.
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.
- 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.
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