Welcome to the latest edition of our Weekly Engineering Market Research Update – Edition 504. This document aims to provide a comprehensive overview of the current trends, developments, and opportunities in the engineering industry. Our team of expert analysts has gathered valuable data and insights to keep you informed and empower you to make well-informed decisions in this rapidly evolving market. Market Trends: China’s dominance as an economic powerhouse continues to be reinforced by the slide in commodity prices as a result of slower than expected economic advancements still as a result of the post covid pandemic world. In the past week, several noteworthy trends have emerged in the engineering sector. One significant trend is the increasing adoption of sustainable engineering practices. As environmental concerns continue to grow, companies are prioritizing eco-friendly solutions, such as renewable energy projects, green infrastructure, and circular economy initiatives. This presents an array of opportunities for businesses specializing in sustainable engineering services and products. Another prominent trend is the integration of artificial intelligence and machine learning in engineering processes. From design optimization to predictive maintenance, AI is revolutionizing the way engineers approach complex challenges. Companies investing in AI technologies gain a competitive edge, streamlining operations, and enhancing productivity. Opportunities and Challenges: The current market landscape offers promising opportunities, particularly in the fields of urban development, smart infrastructure, and digital transformation. Additionally, government initiatives and increased funding for infrastructure projects are stimulating growth in the engineering sector. However, it is essential to address the challenges too. Supply chain disruptions, skilled labor shortages, and fluctuating raw material prices pose potential hurdles for companies. Strategic planning and adaptability are crucial to navigate these uncertainties successfully.

1. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Edition Number: 504
Nicholas Assef
Industry Lead
naa@lccapac.com
Joe Brereton
Associate Director
jmb@lccapac.com
The closure dates of major coal power stations
in New South Wales (NSW) are being pushed
further into the future. The owner of one of the
state's largest coal power stations, Vales Point,
has announced a four-year extension to its
closure date, now set for 2033. This decision
aligns with growing concerns over the slow
transition to low-carbon energy, raising
questions about the reliability of Australia's
power system. Additionally, Origin Energy's
Eraring plant may also see an extended
operating period as experts assess the future
stability of the state's power infrastructure.
Vales Point, located on the NSW Central Coast,
will remain operational until 2033, as confirmed
by Sev.en Global Investments, the recent Czech
company that acquired it. Following a thorough
assessment of the plant's equipment, it was
revealed that Vales Point has a longer technical
life than initially expected. David Morris, Delta
Electricity's acting CEO, expressed confidence in
the plant's ability to consistently supply
electricity until 2033. Extending the lifespan of
Vales Point power station adds to concerns
surrounding Australia's climate targets, which
involve significantly increasing renewable
energy usage and reducing carbon emissions by
2030.
Origin Energy's Eraring plant, another major
coal-powered facility in NSW, is currently under
evaluation for a potential revision of its closure
date in August 2025. An independent technical
report on the state power system's robustness
will play a crucial role in determining whether
Eraring should continue operations. The
Australian Energy Market Operator (AEMO) will
provide data for this assessment, including an
updated supply-demand balance evaluation. A
final decision on Eraring's closure is expected
between August and the year-end. The potential
extension of both Vales Point and Eraring's
operating periods could impact Australia's
climate targets, risking the integration of
renewable energy and the reduction of carbon
emissions.
The continued operation of coal power stations
sheds light on the challenges faced during the
transition to low-carbon energy. The slow pace
of installing replacement capacity and delays in
essential projects like the Snowy 2.0 pumped
hydro project and new transmission
infrastructure raise concerns about maintaining
reliable and affordable power supply. Moreover,
the rate at which renewable energy capacity is
being added falls short of the required pace to
meet the 2030 targets. This situation heightens
worries about potential power price fluctuations
if coal plants close without sufficient
replacement supply.
Delta Electricity, the operator of Vales Point,
emphasises the significance of maintaining
system security and electricity capacity amid
market uncertainties. With delays in
constructing new generation and transmission
infrastructure, combined with earlier closure
announcements by other coal power station
owners such as Origin Energy and AGL Energy,
Delta views Vales Point power station as a
crucial asset in supporting renewable energy
integration and ensuring reliable power supply.
The company considers the decision to keep
Vales Point operational a responsible one, given
the urgent need for secure power throughout
the transition period.
The extension of Vales Point's closure date and
the imminent decision on Eraring's future
operation underscore the challenges
encountered during the transition to low-carbon
energy in NSW. These developments raise
concerns regarding the achievement of
Australia's climate targets, which demand
significant increases in renewable energy use
and reductions in carbon emissions. The slow
pace of the energy transition, project delays,
and insufficient replacement capacity pose risks
to power prices and grid reliability. Striking a
balance between a reliable power supply and
the successful integration of renewable energy
remains a complex task for policymakers and
industry stakeholders alike.
Source: Capital IQ; LCC Analysis
Australian Market
Macro Market Research
Page 1
Engineering, Industrial Services & Engineering Innovation
Powering Ahead or Lagging Behind? Extended Closure Dates for NSW
Coal Power Stations
Week Ending: 14 July 2023

2. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Australian Macroeconomic Update
The S&P ASX 200 was higher last week, rising 3.75% to
end the week.
Michele Bullock was appointed as Reserve Bank
Governor. It remains to be seen whether she is more or
less “hawkish” than Dr Lowe. Though Bullock outlined in
her June speech that NAIRU is 4.5%, 1ppt above the
current employment rate and pointed to an objective to
achieve the inflation target by mid-2025. We expect the
path that Lowe has set for policy will be equally
promoted by Bullock in the medium term. The latest
economic data releases in Australia reveal a lacklustre
consumer sentiment, with the Westpac-MI Consumer
Sentiment survey at 81.3, showing extremely
pessimistic levels of confidence. Additionally, the NAB
business survey is down from +15 in April to +9 in June,
indicating a material decline in business conditions and
fragile confidence, suggesting a potential slowdown in
the economy in the coming months.
Exhibit 3: Global Equities Index Total Return
One Week Return Benchmark
Exhibit 4: Global Equities Index Total Return
Year to Date (YTD) Return Benchmark
Source: Capital IQ, LCC Asia Pacific Research
Source: Capital IQ, LCC Asia Pacific Research
Exhibit 5: Daily USD/AUD Exchange Rate Chart
Exchange Rate over time (-1Y)
Exhibit 6: Australian Yield Curve
Yield Curve % Relative to Historic Benchmark
Source: Capital IQ, Interactive Data Pricing
Source: Capital IQ, Interactive Data Pricing
Page 2
0.68
0.60
0.62
0.64
0.66
0.68
0.70
0.72
0.74
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
USD/AUD
LCC Asia Pacific® report on
Engineering, Industrial Services & Engineering Innovation
3.4
3.1 3.0 3.1
3.3
3.6
3.8 3.9
1.7
2.4
2.7
2.9
3.1
3.3
3.4 3.4
0.0
1.0
2.0
3.0
4.0
5.0
1Y 2Y 3Y 5Y 10Y 15Y 20Y 30Y
Yield
Curve
(%)
Current 1 Year Ago
5.7
4.6
3.7
3.5
2.4
2.4
2.3
(0.7)
Hang Seng Index
KOSPI 200 Index
S&P ASX 200
Straits Times
FTSE 100 (GBP)
S&P 500
Dow Jones Industrial
Tokyo Price Index
19.2
18.4
17.3
4.1
3.8
(0.1)
(0.2)
(1.9)
KOSPI 200 Index
Tokyo Price Index
S&P 500
Dow Jones Industrial
S&P ASX 200
Straits Times
FTSE 100 (GBP)
Hang Seng Index

3. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Source: S&P Global Market Intelligence, LCC Asia Pacific Research
LCC Asia Pacific® report on
Engineering, Industrial Services & Engineering Innovation
LCC’s Engineering, Industrial Services & Innovation Index
Key Charts
16.5
15.7
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23
Total
Return/Spread
(%)
Spread LCC Index S&P ASX 200
Exhibit 8: LCC’s Australian Engineering Index Total Return % Relative to the S&P ASX200 Benchmark Index
Total Return and Spread Information (-1Y)
Exhibit 9: LCC Engineering Index Price-to-Earnings Ratio
Market Cap Weighted Current PE Ratio Over Time (-1Y)
Exhibit 7: LCC Index Valuation Summary
Combined Market Capitalisation Weighted Index, Last Twelve Months (LTM)
Metric Current High Low Yr. Avg Yr. Change
Total Return 16.5% 30.3% (0.7%) 13.6% 16.5%
Dividend Yield 3.3% 3.7% 2.7% 3.1% (10.3%)
Price/Earnings 19.2x 23.6x 16.6x 19.3x (16.5%)
Price/Book 2.3x 3.0x 2.0x 2.5x 15.8%
Exhibit 10: EV/EBITDA Index Valuation
Dynamic Market Cap Weighted, LCC Index Sub-segments
Source: Capital IQ, LCC Asia Pacific Research
Source: Capital IQ, LCC Asia Pacific Research
Page 3
Beta (β): 1.19
19.2x
14.0x
16.0x
18.0x
20.0x
22.0x
24.0x
26.0x
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
P/E
Ratio

4. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Engineering Innovation
Page 4
LCC Asia Pacific® report on
Engineering, Industrial Services & Engineering Innovation
Top 5/Bottom 5 Weekly Price Change Top 5/Bottom 5 EV/EBITDA Multiple (Latest)
Note: constituents with nil values were excluded for the charts above
Ticker News/ Event
AQN
Aquirian announced it has appointed Jessie Klari as General Counsel and Company Secretary,
replacing Victor Goh.
K2F
K2fly announced it has secured a 5 year $2.0m contract to provide its Ground Disturbance Solution
to Roy Hill’s integrated iron ore mining, rail, and port operations in the Pilbara region.
RUL
RPMGlobal Holdings announced it expects Total Contract Value (TCV) from software sales and
operating EBITDA for FY23 to be $70.5m (+25.4% vs FY22) and $12.0m (+243% vs FY22)
respectively.
25.9%
21.9%
13.6%
13.3%
10.6%
-
(3.3%)
(4.5%)
(4.8%)
(6.9%)
ASX:PV1
ASX:IMB
ASX:AEI
ASX:RUL
ASX:DUG
ASX:SDV
ASX:VYS
ASX:AMX
ASX:MYG
ASX:MCE
21.7x
18.0x
14.5x
12.4x
11.9x
8.6x
8.4x
8.2x
5.7x
4.3x
ASX:MAD
ASX:IMB
ASX:MYG
ASX:ASB
ASX:DUG
ASX:IMD
ASX:ORI
ASX:VYS
ASX:AQN
ASX:AMX
Ticker Company Name
Market
Cap (m)
Open
Price
Close
Price
Week
High
Volume
Trend
EV/
EBITDA
EV/
EBIT
ASX:AEI Aeris Environmental Ltd 6 NA 0.03 0.03 ▲ 13.6% NM NM
ASX:AMX Aerometrex Limited 30 0.35 0.32 0.35 ▼ -4.5% 4.3x NM
ASX:ALQ ALS Limited 5,480 10.75 11.32 11.41 ▲ 6.6% 10.9x 14.4x
ASX:AQN Aquirian Limited 15 0.18 0.19 0.20 ▲ 8.6% 5.7x 29.6x
ASX:ASB Austal Limited 989 2.70 2.74 2.84 ▲ 1.9% 12.4x 30.0x
ASX:DUG DUG Technology Ltd 154 1.18 1.30 1.30 ▲ 10.6% 11.9x 29.5x
ASX:IMD Imdex Limited 971 1.83 1.92 1.92 ▲ 3.8% 8.6x 12.4x
ASX:IMB Intelligent Monitoring Group Limited 37 0.16 0.20 0.20 ▲ 21.9% 18.0x NM
ASX:K2F K2fly Limited 18 NA 0.11 0.11 ▲ 6.6% NM NM
ASX:LBL LaserBond Limited 84 0.75 0.77 0.77 ▲ 2.7% 9.2x 14.0x
ASX:MAD Mader Group Limited 1,176 5.40 5.88 5.94 ▲ 6.9% 21.7x 27.6x
ASX:MCE Matrix Composites & Engineering Ltd 59 0.29 0.27 0.29 ▼ -6.9% NM NM
ASX:MYG Mayfield Group Holdings Limited 36 NA 0.40 0.41 ▼ -4.8% 14.5x 76.2x
ASX:ORI Orica Limited 6,892 14.68 15.13 15.14 ▲ 3.1% 8.4x 12.8x
ASX:PV1 Provaris Energy Ltd 37 0.06 0.07 0.07 ▲ 25.9% NM NM
ASX:RUL RPMGlobal Holdings Limited 368 1.44 1.62 1.73 ▲ 13.3% NM NM
ASX:SDV SciDev Limited 58 NA 0.31 0.32 — 0.0% 10.6x 21.5x
ASX:VYS Vysarn Limited 59 0.15 0.15 0.15 ▼ -3.3% 8.2x 22.0x
Weekly change
(%)

5. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Industrial Engineering Services
Page 5
LCC Asia Pacific® report on
Engineering, Industrial Services & Engineering Innovation
Note: constituents with nil values were excluded for the charts above
Top 5/Bottom 5 Weekly Price Change Top 5/Bottom 5 EV/EBITDA Multiple (Latest)
Ticker News/ Event
CDD
Cardon announced its Chairman Micheal Alscher is taking temporary leave. Neville Buch will be
Acting Chairman over this period.
IPL
Incitec Pivot announced it has received acquisition proposals for its fertilisers business and is
evaluating a potential sale or demerger to maximise shareholder value. This comes after the
company’s plant to separate its explosives and fertilisers businesses has become uncertain
following the departures of Christine Corbett, CEO Designate of Incitec Pivot Fertilisers, and Group
CEO Jeanne Johns in June.
10.4%
9.9%
7.5%
6.3%
6.2%
(0.6%)
(1.4%)
(2.1%)
(3.8%)
(5.1%)
ASX:DOW
ASX:FWD
ASX:MIN
ASX:IPL
ASX:WOR
ASX:SSM
ASX:SRG
ASX:DUR
ASX:DDB
ASX:CDD
15.4x
14.2x
13.5x
11.4x
11.0x
5.6x
4.4x
4.2x
3.9x
2.7x
ASX:WOR
ASX:JLG
ASX:FWD
ASX:SSM
ASX:MGH
ASX:SRG
ASX:IPL
ASX:DDB
ASX:VRS
ASX:SXE
Ticker Company Name
Market
Cap (m)
Open
Price
Close
Price
Week
High
Volume
Trend
EV/
EBITDA
EV/
EBIT
ASX:ACF Acrow Formwork and Construction Services Limited
205 0.73 0.77 0.77 ▲ 3.4% 7.6x 12.7x
ASX:CDD Cardno Limited 15 0.40 0.38 0.41 ▼ -5.1% NM 0.6x
ASX:DOW Downer EDI Limited 3,071 4.17 4.58 4.58 ▲ 10.4% 9.5x 23.7x
ASX:DUR Duratec Limited 289 1.23 1.19 1.25 ▼ -2.1% 9.4x 13.4x
ASX:DDB Dynamic Group Holdings Limited 34 0.25 0.25 0.25 ▼ -3.8% 4.2x NM
ASX:FWD Fleetwood Limited 220 2.07 2.33 2.37 ▲ 9.9% 13.5x NM
ASX:GNP GenusPlus Group Limited 204 1.12 1.15 1.21 — 0.0% 8.9x 16.4x
ASX:IPL Incitec Pivot Limited 5,574 2.76 2.87 3.00 ▲ 6.3% 4.4x 5.7x
ASX:JLG Johns Lyng Group Limited 1,484 5.34 5.39 5.43 ▲ 1.3% 14.2x 17.1x
ASX:LYL Lycopodium Limited 395 9.50 9.90 10.04 ▲ 1.1% 6.3x 7.1x
ASX:MGH MAAS Group Holdings Limited 808 2.48 2.47 2.54 ▼ -0.4% 11.0x 16.9x
ASX:MIN Mineral Resources Limited 13,992 68.21 72.50 73.07 ▲ 7.5% 8.7x 11.7x
ASX:SND Saunders International Limited 122 1.13 1.12 1.13 — 0.0% 6.0x 7.3x
ASX:SSM Service Stream Limited 502 0.83 0.82 0.84 ▼ -0.6% 11.4x NM
ASX:SXE Southern Cross Electrical Engineering Limited
169 0.64 0.65 0.65 — 0.0% 2.7x 3.5x
ASX:SRG SRG Global Limited 371 0.74 0.72 0.74 ▼ -1.4% 5.6x 10.1x
ASX:SOP Synertec Corporation Limited 99 0.23 0.23 0.23 ▲ 2.2% NM NM
ASX:VRS Veris Limited 43 NA 0.08 0.08 ▲ 3.8% 3.9x 13.4x
ASX:WOR Worley Limited 8,873 16.05 16.87 16.88 ▲ 6.2% 15.4x 21.9x
Weekly change
(%)

6. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Mining Engineering Services
Page 6
LCC Asia Pacific® report on
Engineering, Industrial Services & Engineering Innovation
Note: constituents with nil values were excluded for the charts above
Top 5/Bottom 5 Weekly Price Change Top 5/Bottom 5 EV/EBITDA Multiple (Latest)
Ticker News/ Event
BOL
Boom Logistics announced it has appointed Interim CEO Ben Pieyre as CEO and Managing Director
effective immediately.
DRA
DRA announced it was appointed by Atlantic Lithium to conduct a Scoping Study for the inclusion of
a floatation circuit at its Ewoyaa Lithium Project in Ghana.
MAH
Macmahon Holdings announced Non-Executive Directors Alex Ramlie and Arief Sidarto stepped
down from the Board on 13 July 2023. David Gibbs has been appointed as a replacement.
MSV
Mitchell Services announced it has extended is on-market share buy-back which commenced on 14
July 2023 and will continue for a period no longer than 12 months. During this period, the company
can buy back up to 10% of its fully paid ordinary shares. The company also provided an operational
update and expects FY23 revenue and EBITDA will be materially higher than FY22 levels.
13.0%
9.1%
7.7%
5.0%
3.9%
-
(2.3%)
(3.3%)
(9.6%)
(25.8%)
ASX:BOL
ASX:MND
ASX:AJL
ASX:PRN
ASX:DDH
ASX:BPP
ASX:GNG
ASX:MAH
ASX:RDG
ASX:DRA
20.4x
14.4x
12.9x
11.6x
7.3x
3.0x
2.9x
2.9x
1.9x
1.0x
ASX:RDG
ASX:BSA
ASX:EGN
ASX:MND
ASX:ANG
ASX:PRN
ASX:EHL
ASX:BOL
ASX:MAH
ASX:DRA
Ticker Company Name
Market
Cap (m)
Open
Price
Close
Price
Week
High
Volume
Trend
EV/
EBITDA
EV/
EBIT
ASX:AJL AJ Lucas Group Limited 19 0.01 0.01 0.01 ▲ 7.7% NM NM
ASX:ANG Austin Engineering Limited 163 0.28 0.28 0.29 ▲ 3.7% 7.3x 9.0x
ASX:BPP Babylon Pump & Power Limited 12 0.01 0.01 0.01 — 0.0% NM NM
ASX:BLY Boart Longyear Group Ltd. 429 1.42 1.45 1.45 ▲ 2.5% 4.8x 9.2x
ASX:BOL Boom Logistics Limited 56 0.12 0.13 0.13 ▲ 13.0% 2.9x 19.5x
ASX:BSA BSA Limited 43 0.60 0.60 0.61 — 0.0% 14.4x NM
ASX:DDH DDH1 Limited 363 0.88 0.93 0.93 ▲ 3.9% 3.5x 6.4x
ASX:DCG Decmil Group Limited 27 0.17 0.18 0.18 ▲ 2.9% NM NM
ASX:DRA DRA Global Limited 77 1.85 1.41 1.85 ▼ -25.8% 1.0x 4.6x
ASX:EHL Emeco Holdings Limited 351 0.68 0.68 0.71 — 0.0% 2.9x 8.1x
ASX:EGN Engenco Limited 129 NA 0.41 0.42 — 0.0% 12.9x 42.4x
ASX:GNG GR Engineering Services Limited 338 2.14 2.09 2.16 ▼ -2.3% 5.8x 6.6x
ASX:MAH Macmahon Holdings Limited 305 0.15 0.15 0.16 ▼ -3.3% 1.9x 5.8x
ASX:MYE Metarock Group Limited 41 0.14 0.14 0.14 — 0.0% NM NM
ASX:MSV Mitchell Services Limited 88 0.41 0.41 0.42 — 0.0% 4.9x NM
ASX:MND Monadelphous Group Limited 1,214 11.80 12.58 12.58 ▲ 9.1% 11.6x 17.8x
ASX:NWH NRW Holdings Limited 1,142 2.52 2.53 2.56 ▲ 0.8% 5.0x 8.6x
ASX:PRN Perenti Limited 795 1.11 1.17 1.17 ▲ 5.0% 3.0x 8.6x
ASX:RDG Resource Development Group Limited 136 0.05 0.05 0.05 ▼ -9.6% 20.4x 24.0x
Weekly change
(%)

7. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
This general information has been prepared by LCC Asia Pacific Pty. Limited ("LCC"). The research is based on public information
obtained from sources believed to be accurate and reliable. This report is not intended to be “sell side research” and does not
provide opinion or recommendation whatsoever. LCC Asia Pacific seeks to have commercial relationships with companies
mentioned in this report.
LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty,
guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the
information. No opinion or recommendation is made within this research. Information in this market update is sourced from a
variety of data points including Capital IQ, News Outlets, the Australian Stock Exchange & company reports, media releases and
related content.
This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be
relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for
actions made. © LCC Asia Pacific research@lccapac.com
Thanks to Freeman Liu who oversees the publication of this weekly market update.
LCC Asia Pacific is a boutique investment banking practice, providing independent
corporate finance & strategy advice to clients in Australia and across Asia Pacific
markets. We have acted for ambitious clients ranging from “emerging” companies,
up to Fortune 100 & “Mega” Asian listed entities.
LCC Asia Pacific provides clear, unbiased counsel to CEOs and Boards of Directors
considering growth strategies, business transformation and challenging corporate
decisions. We understand that to service such clients requires a high performance
approach, and a tenacity to deliver results.
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