Premier Energy: focus on RES (HOLD - initiation of coverage)

We initiate coverage of Premier Energy with a price target (PT) of RON 22.9/share and a HOLD. Premier is a fast-expanding energy group, with distribution, renewable power production assets and supply activities primarily in Romania and Moldova, led by an experienced management team, with a strong M&A track record. The company has grown via acquisitions, starting with local distribution and supply assets in Romania, and then expanding into Moldova, where it is the largest power distributor and supplier. In 2022, it entered the renewable energy sector, purchasing RES parks and taking a 51% stake in Alive Capital, the largest aggregator of green energy assets in Romania. As at YE24, Premier owned 187MW operating wind and solar capacity in Romania and Moldova, and a 13MW gas-fired balancing plant. The company managed a portfolio of 915MW third-party renewable assets in Romania and Moldova, which represented, together with the owned portfolio, nearly 20% of the countries’ total RES capacity. In 1Q24, Premier purchased CEZ Vanzare (now Premier Energy Furnizare), a power supply company, with c.1.3m clients, which offers the ideal platform for cross-selling and ensuring the monetisation of its RES power production, in our view.