GNX

1.82%

27.0¢ genex power limited

General GNX News, page-1845

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Andrix

3,580 Posts.

12/07/22

14:28

Post #: 62495766

Originally posted by dabozza: ↑
For anyone that's interested, I posted on FinTwit some updated valuations for Genex. I am still very wary of Management's willingness to develop their pipeline further without sufficient access to the capital markets - and if they do that, well then they will need to do more cap raises at even lower prices, diluting us shareholders further.

However, some of the recent acquisitions also shine a light on the discount the market is applying to Genex's assets. When I did some rought estimates on the CWP/Origin potential bid, it worked out to be around a ~30% discount for Genex's assets on a weighted basis.
MW % of Port Value MW % of Port Value
1 Solar/Wind (Operating) 404 22% $1,313 100 12% $325
2 Battery (Operating) 0 0% $- 0 0% $-
3 In Construction 244 13% $610 300 37% $750
4 In Development 624 34% $1,248 150 18% $300
5 Feasibility (pre FID) 550 30% $831 270 33% $408
6 Total 1822 100% $4,000 820 100% $1,783
7

8 Genex EV (26f) $1,175

9 Genex Valuation (CWP) $1,783

10 Discount 34%

My guess is that the market is pricing Genex as a bond proxy. But, I think the market is being overly harsh - and specifically not adjusting for the inflation protection that the EA agreement on the pumped hydro has. If I use an inflation-protected bond rate and a 2% equity premium, then I think the value of the pumped hydro system is around $1bn alone. Note that on a $1.175bn enterprise value in FY26f, that means the rest of the pipeline and assets are only being valued at $175m today - way below the fair price.

I've shifted my sentiment to a buy - not because I think management can't stuff this up, but the discount is probably a fair risk-reward that management might stuff it up! Besides, the market last week really just took the interest rate hike in it's stride, and that's the biggest risk to valuation for Genex right now. So at least that's one less thing to worry about perhaps. GLTAH.
Expand
Thanks dabozza. I'm not sure about comparing GNX to treasury bonds. The similar price arrived at could be just coincidence.

However, the first table is excellent. I've known that GNX is undervalued on current projects alone. Good to see some reasonable conservative figures around that. (I've not checked your calculations; taking them at face value.)

GNX Price at posting: 12.5¢ Sentiment: Hold Disclosure: Held

5 Upvote

0 Great analysis

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Last 27.0¢		Change -0.005(1.82%)		Mkt cap ! $373.9M

Open	High	Low	Value	Volume
27.0¢	27.5¢	27.0¢	$255.2K	944.7K

Buyers (Bids)

No.	Vol.	Price($)
23	19170600	27.0¢

Sellers (Offers)

Price($)	Vol.	No.
27.5¢	7131181	69

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No.	Vol.	Price($)
18	17117507	0.270
14	3345012	0.265
2	6600	0.260
2	41970	0.255
2	19000	0.250

Price($)	Vol.	No.
0.275	6405944	62
0.280	2249878	14
0.285	7017	1
0.290	8125	2
0.295	124962	2

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General GNX News, page-1845

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Buyers (Bids)

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		MW	% of Port	Value	MW	% of Port	Value
1	Solar/Wind (Operating)	404	22%	$1,313	100	12%	$325
2	Battery (Operating)	0	0%	$-	0	0%	$-
3	In Construction	244	13%	$610	300	37%	$750
4	In Development	624	34%	$1,248	150	18%	$300
5	Feasibility (pre FID)	550	30%	$831	270	33%	$408
6	Total	1822	100%	$4,000	820	100%	$1,783
7
8	Genex EV (26f)	$1,175
9	Genex Valuation (CWP)	$1,783
10	Discount	34%

General GNX News, page-1845

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