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Lincoln Crowne Engineering Mining Services Market Update 04072014

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Engineering & Mining Services Update for Australian market for week ended 4th July 2014

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Lincoln Crowne Engineering Mining Services Market Update 04072014

  1. 1. 4 July 2014 WWW.LCC.ASIA IMPORTANT DISCLAIMER This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. 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. 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. Page 1 / 2 WEEKLYAustralianEngineering&MiningServices M&A Rumour and Activity The Australian market was up over the week with the S&P / ASX100 ending at 4595 points. The Australian dollar decreased over the week closing at US93.5 cents. The RBA has decided to keep the cash rate at 2.5 percent for the month of July; the rate has now remained unchanged for ten consecutive board meetings. Glenn Stevens indicated that the RBA believes the Australian dollar is overvalued and is set to fall significantly, “and not by just a few cents”. PPK Group Limited (ASX:PPK), a designer, manufacturer, and distributor of portable underground mining equipment announced it has entered into a Binding Heads of Agreement to acquire full ownership of MONEx Technology Pty Ltd’s Electronic Engine Management System technology, associated IP, manufacturing line and existing inventory for $2.8 million. MONEx Technology develops and supplies electronic engine management and safety shutdown systems for diesel. The acquisition is aligned with PPK’s strategy of increasing investments in the mining services sector. CHAMP Private Equity (www.champequity.com.au) is rumoured to have sold industrial transport and mining services company, LCR Group (www.lcrgroup.com.au), to rival buyout firm Archer Capital (www.archercapital.com.au) for approximately $200 million, after the troubled transport and logistics company McAleese Group (www.mcaleese.com.au) failed to use its option to buy the business. Progress Rail Services Corporation (www.progressrail.com), a supplier of railroad and transit system products and wholly owned subsidiary of heavy equipment giant Caterpillar, has concluded an agreement to buy the Track Business of Pacific Rail Engineering Pty Ltd (www.pacificrail.com.au). Pacific Rail Engineering’s Track Business manufactures and designs track products for use in rail networks. Lend Lease Group (ASX:LLC) is believed to be among the interested parties for Leighton Holdings’ John Holland operation. It is rumoured that Lend Lease may make an offer for the $1 billion-plus business ahead of the July 31st deadline, with other interested parties being America’s KBR Inc (NYSE:KBR), France’s Bouygues SA (ENXTPA:EN) and South Korea’s Samsung C&T Corporation (KOSE:A000830). Germany plans to halt shale-gas drilling for the next seven years over concerns that exploration techniques could pollute groundwater. A halt will increase Germany’s reliance on its major natural gas supplier, Russia. An increased reliance will come amid rising political tensions between the two nations over Ukraine. News Headlines and Key Sector Developments Ticker News/Event Ticker News/Event DCG Announced Mr Giles Everist has resigned as Chairman but will remain as a Non-Executive Director. Current Non-Executive Director, Mr Bill Healy, has taken over the position of Chairman SXE Advised that it has been awarded a contract for Electrical and Instrumentation works at BHP Billiton Iron Ore’s Yarnima Power Station, valued at approximately $25M EGN Advised that Mrs Anna Bagley has resigned as Joint Company Secretary, with Mr Kevin Pallas continuing as Company Secretary and CFO TPP Announced it has entered a trading halt, pending the release of details of a material contract MAH Announced the award of a 2 year contract extension at Newmont Mining’s Waihi Gold Mine, valued at $38M WOR Announced that Alderon Iron Ore Corp has temporarily suspended WOR’s EPCM contract for the Kami Iron Ore Project, pending completion of project financing Source: Capital IQ, LCC research
  2. 2. 4 July 2014 WWW.LCC.ASIA IMPORTANT DISCLAIMER This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. 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. 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. Page 2 / 2 WEEKLYAustralianEngineering&MiningServices Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/ Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT AJL 241 0.88 0.90 0.94 0.88 ▲ 2.9% NM NM ASL 290 0.84 0.93 0.94 0.83 ▲ 10.7% 3.4x 7.1x AAX 90 0.48 0.54 0.55 0.48 ▲ 12.5% NM NM ANG 137 1.62 1.63 1.66 1.56 ▲ 0.6% 7.3x 10.9x BLY 94 0.19 0.21 0.23 0.19 ▲ 7.9% 5.6x NM BKN 732 3.83 4.28 4.31 3.75 ▲ 11.7% 7.5x 12.3x BYL 44 0.40 0.40 0.40 0.40 ▲ 1.3% 1.9x 3.6x BOL 59 0.13 0.13 0.14 0.12 — 0.0% 3.4x 8.3x BSA 23 0.11 0.10 0.11 0.10 ▼ -4.8% 4.6x 16.1x CDD 1,080 6.40 6.73 6.74 6.26 ▲ 5.2% 9.3x 11.4x CGH 133 0.38 0.40 0.41 0.37 ▲ 6.7% 3.2x 7.3x COF 64 0.24 0.25 0.26 0.23 ▲ 6.4% 10.1x 25.1x DCG 309 1.80 1.83 1.84 1.75 ▲ 1.9% 3.4x 3.9x DSB 6 0.11 0.12 0.34 0.34 ▲ 9.1% 3.0x 8.5x DOW 2,033 4.50 4.67 4.70 4.50 ▲ 3.8% 3.7x 6.5x EAL 72 0.55 0.57 0.58 0.55 ▲ 2.7% 6.3x 7.6x EGN 37 0.12 0.12 0.15 0.15 — 0.0% NM NM EHL 125 0.22 0.22 0.22 0.20 — 0.0% 5.0x 178.1x EVZ 3 0.01 0.01 0.01 0.01 ▲ 8.3% 21.7x NM FWD 144 2.24 2.37 2.47 2.12 ▲ 5.8% 5.6x 10.9x GCS 81 0.45 0.48 0.48 0.44 ▲ 5.6% 3.7x 6.0x GNG 111 0.67 0.74 0.74 0.67 ▲ 10.4% 4.8x 5.1x HDX 42 0.20 0.20 0.20 0.19 ▲ 2.6% 4.9x 7.5x IMD 132 0.66 0.62 0.66 0.60 ▼ -5.6% 7.4x 16.6x LEI 7,115 19.78 21.02 21.14 19.51 ▲ 6.3% 3.9x 7.4x LCM 62 0.80 0.89 0.89 0.77 ▲ 11.3% 5.4x 6.3x LYL 84 2.10 2.15 2.15 1.92 ▲ 2.4% 2.1x 2.3x MLD 398 1.90 1.97 1.99 1.84 ▲ 3.4% 2.5x 3.8x MAH 132 0.11 0.11 0.11 0.10 — 0.0% 1.3x 3.1x MYE 34 0.48 0.46 0.48 0.46 ▼ -5.2% 2.5x 5.0x MIN 1,866 9.63 10.00 10.10 9.39 ▲ 3.8% 3.6x 5.5x MCE 116 1.18 1.23 1.23 1.17 ▲ 4.7% 8.5x 36.5x MND 1,567 15.85 16.91 16.99 15.71 ▲ 6.7% 5.8x 6.6x MRM 748 2.08 2.04 2.10 2.04 ▼ -1.9% 7.2x 11.3x NOD 13 0.05 0.05 0.05 0.05 ▲ 4.4% 1.3x 1.6x NWH 275 0.94 0.99 1.00 0.92 ▲ 4.8% 2.4x 3.8x OTC 21 0.10 0.11 0.11 0.10 ▲ 10.0% 1.6x 2.2x PRG 324 2.78 2.74 2.83 2.61 ▼ -1.4% 6.1x 7.4x RCR 400 2.82 2.92 2.95 2.75 ▲ 3.5% 7.4x 9.5x RQL 40 0.12 0.13 0.13 0.12 ▲ 8.3% 5.8x NM SND 68 0.87 0.86 0.96 0.86 ▼ -1.1% 6.2x 6.8x SDM Sedgman Limited 120 0.51 0.53 0.55 0.50 ▲ 3.9% 13.2x NM SSM Service Stream Limited 79 0.19 0.21 0.21 0.19 ▲ 7.9% NM NM SWL 167 1.95 1.91 1.95 1.89 ▼ -1.8% 7.5x 8.3x SXE 86 0.49 0.53 0.53 0.48 ▲ 9.3% 1.7x 2.2x STS 38 0.58 0.60 0.61 0.58 ▲ 3.4% 1.9x 5.6x SWK 43 0.26 0.26 0.27 0.26 — 0.0% 2.4x 6.3x TPP 16 0.09 0.09 NM NM — 0.0% NM NM TTN 114 1.97 2.25 2.29 1.97 ▲ 14.5% 5.3x 6.6x TSE 633 1.10 1.24 1.25 1.09 ▲ 12.8% 6.9x 13.8x UGL 1,198 6.83 7.30 7.33 6.81 ▲ 6.9% 14.0x 22.6x VMG 28 0.01 0.01 0.01 0.01 ▼ -10.0% NM NM WDS 138 0.93 0.95 1.00 0.93 ▲ 2.2% 2.7x 5.0x WOR 4,672 17.10 18.93 18.97 17.05 ▲ 10.7% 10.7x 12.0x WTP 149 0.80 0.80 0.84 0.79 — 0.0% 1.4x 6.6x Source: Capital IQ, LCC research UGL Limited Ausdrill Limited Watpac Limited Lycopodium Limited MACA Limited MacMahon Holdings Limited Mastermyne Limited WorleyParsons Limited VDM Group Limited WDS Limited Bradken Limited Boom Logistics Limited EVZ Limited Fleetwood Corporation Limited Downer EDI Limited Ausenco Limited Engenco Limited Emeco Holdings Limited Global Construction Services Limited Coffey International Limited Cardno Limited BSA Limited Brierty Limited Decmil Group Limited Austin Engineering Limited Company Name AJ Lucas Group Limited Boart Longyear Limited Calibre Group Limited DeltaSBD Limited Transfield Services Limited Swick Mining Services Limited Mermaid Marine Australia Limited Monadelphous Group Limited Mineral Resources Limited OTOC Limited RCR Tomlinson Limited NRWHoldings Limited Programmed Maintenance Services Seymour Whyte Limited Tempo Australia Limited Titan Energy Services Limited GR Engineering Services Limited E&A Limited Structural Systems Limited Resource Equipment Limited Saunders International Limited Southern Cross Electrical Engineering Matrix Composites & Engineering Hughes Drilling Pty Limited Logicamms Limited Imdex Limited Leighton Holdings Limited Nomad Building Solutions Limited

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