Allegro - A Clean Energy Play Set to Double in Size by 2025
We initiate coverage of Polenergia SA (“Polenergia,” the “Company”) with a buy recommendation and a target price of PLN 62.99. Polenergia is perfectly positioned to capitalize on positive medium-term trends in energy markets. At EU level, increasingly strict environmental standards generate upward pressure on prices of carbon emissions, and policy mechanisms are being created to promote the expansion of economically viable carbon-neutral energy sources. In Poland, RES producers are seeing a shift in policy through increasingly eco-friendly energy legislation. Polenergia has developed a pipeline of renewable energy projects to bring its wind power capacity to 300 MW and set up 120 MW of solar capacity over five years. In addition, the Company has obtained concessions to build wind farms off the Baltic Sea coast, but to move forward it will need to onboard additional sources of funding (we estimate the net present value of phase 1 of the offshore project at PLN 0.77bn). Polenergia also continues to grow its other business segments, including trading, where it recently launched energy aggregation services for independent RES, expected to add ~PLN 6m to this year’s profits and grow consistently in the years ahead as Poland’s RES capacity increases. Markets at the moment are bullish about low-carbon technologies, as reflected in massive ESG fund inflows inflows, and we see PEP as ripe for further re-rating with an EV/EBITDA ratio that shows a 15% discount to the peer multiple, which itself has expanded by 30% over the last five years.
Set up in 1986, mBank (originally BRE – Export Development Bank) is Poland’s 4th largest universal banking group in terms of total assets and 5th by net loans and deposits at the end of June 2019. mBank has one of the oldest brokerages in Poland – we have been providing brokerage services since 1991 - and the biggest, serving about 300 ths clients.
We provide all brokerage services available in the Polish capital market (i.e. Warsaw Stock Exchange, non-public markets and forex) in a way that meets the expectations of all groups of investors, both individual and institutional. Participating in the dynamic growth of the Polish capital market since its inception, we have acquired competences and experience needed to provide the highest quality of service and we have won the trust and satisfaction of our Clients.
Over the past decade, mBank's Equity Research Team has been consistently ranked among the top research teams in Parkiet's annual institutional investor surveys (Parkiet is Poland's leading daily business newspaper). mBank analysts provide coverage on an extensive list of companies, mainly in Poland but also elsewhere in the CEE region: Austria, Czechia, Portugal, Ukraine and Hungary.
Clients get access to a comprehensive selection of research products including daily market insights, monthly roundups, macroeconomic views, industry- and company- specific analyses, investing strategies, earnings comments, etc.
We give our institutional clients numerous opportunities to connect with industry professionals, top executives, and leading analysts:
- Get direct access to senior management teams at listed companies (over 30 meetings in 2018),
- Engage in our many industry events, featuring listed Polish and global firms (in 2018, we hosted sector-themed conferences around industrials, chemical companies, telecoms, retail, and financials, and co-hosted a Best of Poland investors' with Commerzbank and the Warsaw Stock Exchange),
- Stay informed through an array of enlightening discussion panels, workshops, and briefing sessions with regulatory officials.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.