Lincoln crowne engineering & mining services research 02082013

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Lincoln Crowne Weekly Engineering & Mining Services Research Report For Week Ended 2nd August 2013 - M & A activity on the rise

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Lincoln crowne engineering & mining services research 02082013

  1. 1. 2 August 2013 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. WEEKLYAustralianEngineering&MiningServices Page 1 / 2 Market review The Australian dollar ended the week below the US90 cent mark following weak producer price index data which gave the Reserve Bank of Australia further incentive to cut interest rates. The dollar also dropped sharply mid-week after Reserve Bank of Australia Governor, Glenn Stevens, indicated that last week’s soft inflation numbers provided scope to cut rates. Australian shares surged through the week as the market followed global stocks higher on the back of positive manufacturing news from China and favourable employment data in the US. The week ended on a sour note as Treasurer Chris Bowen revealed four-year forward revenue estimates have been slashed by $33B, with the budget deficit to hit $30.1B this financial year. Source: Capital IQ News Headlines and Key Sector Developments Ticker News/Event Ticker News/Event BYL Has entered into a new joint venture with Kalayura Construction Services known as the Brierty Kalayura Joint Venture. The joint venture provides BYL’s clients the opportunity to engage an Aboriginal contracting company for civil and mining infrastructure works LEI Has taken 100% ownership of telecommunications, energy and infrastructure services company, Silcar Pty Ltd. Silcar was a 50/50 joint venture between Thiess and Siemens. The acquisition was agreed so that both companies could better focus their respective strategic portfolios CLO Received a conditional proposal from its major shareholder, Murray & Roberts Holdings Limited, to acquire all the outstanding shares in CLO that it does not already own at $1.46 cash per share. Murray & Roberts is a major South African engineering, contracting and construction services company and first invested in CLO in 2003. They currently own 61.6% of CLO LEI Thiess has been awarded a $650M contract to deliver the long awaited Moreton Bay Rail Link which will service a major suburban growth corridor in South East Queensland. Thiess is the construction spearhead of the Trackstar team which includes design subcontractors Aurecon, AECOM, HASSELL, and geotechnical subcontractor Golder Associates DOW Has been invited to enter into discussions with Slater & Gordon Lawyers (in relation to a proposed shareholder class action), failing which Slater & Gordon Lawyers have been instructed to commence proceedings. No details of the amount of claims have been provided and DOW will vigorously defend any proceedings RCR Has taken 100% ownership of infrastructure engineering company Norfolk Group Limited in accordance with the previously announced scheme of arrangement EHL Announced that the Managing Director, Mr Keith Gordon, has stepped down. Mr Gordon will remain in his current position until a successor is appointed and commences with EHL WDS Expects NPAT for the 12 months to 30 June 2013 to slightly exceed the upper end of its February guidance range of $6 to $8M. Revenue for FY13 is now expected to be in the range of $350 to $355M, compared with the Company’s previous guidance of $330-350M Source: Capital IQ, Thomson Reuters, LCC research 3800 4000 4200 4400 3 Jul 13 18 Jul 13 2 Aug 13 S&P/ASX 100 Index 0.880 0.900 0.920 0.940 3 Jul 13 18 Jul 13 2 Aug 13 AUD vs USD
  2. 2. 2 August 2013 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. WEEKLYAustralianEngineering&MiningServices Page 2 / 2 Market Cap Open Price Close Price High Low Weekly Volume EV/ EV/ Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT AJL 418 1.44 1.57 1.61 1.43 ▲ 8.7% NM NM ASL 351 1.10 1.13 1.17 1.08 ▲ 2.3% 2.8x 4.8x AAX 187 1.50 1.52 1.55 1.46 ▲ 1.3% 2.9x 3.4x ANG 305 4.00 4.17 4.20 3.98 ▲ 4.3% 6.0x 6.9x BLY 248 0.54 0.55 0.56 0.51 ▲ 1.9% 2.4x 3.8x BKN 836 4.60 4.97 5.05 4.53 ▲ 8.0% 5.5x 7.2x BYL 32 0.28 0.29 0.30 0.28 ▲ 5.5% 1.9x 3.0x BOL 68 0.13 0.15 0.15 0.13 ▲ 11.5% 3.0x 5.3x BSA 40 0.17 0.18 0.18 0.17 ▲ 6.1% 4.9x 12.5x CDD 839 5.55 5.84 5.89 5.17 ▲ 5.2% 7.3x 8.5x CGH 112 0.34 0.37 0.38 0.33 ▲ 7.4% 1.6x 2.5x CLO 1108 1.10 1.43 1.43 1.10 ▲ 29.5% 10.0x 10.3x COF 35 0.14 0.14 0.14 0.13 ▼ -3.6% 3.3x 4.5x DCG 352 2.10 2.09 2.11 2.05 ▼ -0.5% 3.7x 4.0x DSB 20 0.44 0.43 0.44 0.43 ▼ -2.3% 2.8x 3.5x DOW 1669 3.74 3.85 3.90 3.67 ▲ 2.9% 3.5x 6.2x EAL 62 0.55 0.55 0.56 0.52 0.0% 7.3x 9.1x EGN 53 0.16 0.17 0.17 0.15 ▲ 9.7% NM NM EHL 149 0.27 0.26 0.27 0.25 ▼ -3.8% 2.4x 5.2x EVZ 12 0.05 0.06 0.06 0.05 ▲ 16.0% 8.3x 13.9x FWD 233 3.80 3.85 4.14 3.65 ▲ 1.3% 3.8x 5.1x FGE 401 4.26 4.65 4.69 4.24 ▲ 9.2% 3.0x 3.8x GCS 85 0.46 0.50 0.51 0.46 ▲ 8.7% 3.5x 5.3x GNG 71 0.49 0.47 0.49 0.47 ▼ -4.1% 4.1x 4.5x HDX 44 0.26 0.24 0.26 0.24 ▼ -7.7% 3.7x 5.6x IMD 162 0.76 0.77 0.82 0.73 ▲ 1.3% 3.2x 3.7x LEI 5881 16.50 17.44 17.57 16.16 ▲ 5.7% 3.4x 6.9x LCM 101 1.45 1.45 1.48 1.41 0.0% 5.5x 5.7x LYL 162 4.20 4.15 4.20 4.06 ▼ -1.2% 3.7x 3.9x MLD 355 1.95 2.06 2.11 1.95 ▲ 5.6% 3.7x 5.6x MAH 175 0.15 0.14 0.15 0.14 ▼ -3.4% 1.1x 2.0x MYE 56 0.70 0.74 0.78 0.67 ▲ 5.7% 2.1x 2.7x MIN 1819 9.54 9.78 9.91 9.40 ▲ 2.5% 7.5x 11.3x MCE 87 0.88 0.92 0.93 0.86 ▲ 4.5% NM NM MND 1510 16.30 16.60 16.65 15.96 ▲ 1.8% 5.9x 6.7x NMS 68 0.04 0.04 0.04 0.04 ▲ 5.7% 70.4x NM NWH 282 0.98 1.01 1.03 0.94 ▲ 3.6% 1.5x 1.9x OTC 14 0.06 0.08 0.08 0.05 ▲ 36.4% 1.6x 2.2x PRG 295 2.48 2.50 2.51 2.40 ▲ 0.8% 5.8x 7.1x RCR 317 2.32 2.39 2.43 2.30 ▲ 3.0% 4.6x 6.4x RQL 37 0.15 0.15 0.15 0.14 0.0% 2.7x 4.3x SND 66 0.84 0.85 0.86 0.83 ▲ 0.6% 7.5x 8.0x SDM 137 0.65 0.62 0.66 0.61 ▼ -4.6% 1.3x 1.9x SWL 95 1.20 1.23 1.25 1.16 ▲ 2.1% 8.4x 10.5x SXE 159 1.01 0.99 1.01 0.99 ▼ -2.5% 5.0x 6.1x STS 23 0.38 0.37 0.39 0.35 ▼ -2.7% 2.2x 5.2x SWK 50 0.31 0.30 0.31 0.30 ▼ -1.6% 1.7x 3.3x TPP 8 0.05 0.05 0.05 0.05 ▼ -3.8% NM NM TSE 489 0.91 0.96 0.97 0.88 ▲ 5.5% 5.3x 10.1x UGL 1214 7.25 7.40 7.51 7.20 ▲ 2.1% 9.1x 12.5x VMG 18 0.02 0.02 0.02 0.02 ▲ 5.6% NM NM WDS 68 0.37 0.47 0.49 0.37 ▲ 27.0% 3.0x 6.6x WOR 5430 21.75 21.98 22.45 21.54 ▲ 1.1% 10.4x 11.5x WTP 96 0.55 0.52 0.55 0.52 ▼ -4.6% NM NM Source: Capital IQ, LCC research 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 Transfield Services Limited Swick Mining Services Limited Neptune Marine Services Limited Monadelphous Group Limited Mineral Resources Limited Engenco Limited Emeco Holdings Limited Forge Group Limited Global Construction Services Limited Coffey International Limited Clough 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 Bradken Limited DeltaSBD Limited Boom Logistics Limited EVZ Limited Fleetwood Corporation Limited Downer EDI Limited Ausenco Limited Ausdrill Limited Watpac Limited Lycopodium Limited MACA Limited MacMahon Holdings Limited Mastermyne Limited WorleyParsons Limited Sedgman Limited VDM Group Limited WDS Limited OTOC Limited RCR Tomlinson Limited NRWHoldings Limited Logicamms Limited Imdex Limited Leighton Holdings Limited Programmed Maintenance Services Seymour Whyte Limited UGL Limited Tempo Australia Limited

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