LCC Asia Pacific Corporate Finance edition 352 of developments in the Australian Engineering, Mining Services & Contracting Sector. Despite ongoing volatility it was pleasing to see a number of Australian companies announce contract award wins over the week - including Worley, MacMahon & GR Engineering

1. ASX200 INDEX
Australia Week Ending
3rd April 2020
Date Published
6th April 2020
Edition
352
Australian Engineering, Contractors & Service Providers
Market Performance – Edition 352 – Government Stimulus Knows No End
M&A Rumour, Industry News and Private Activity
DAILY PERFORMANCE OF ASX200
Good to see contract awards / extensions announced by GNG, PGX, MAH & WOR
(see over).
WA & Qld restrict FIFO Worker movements and Catepillar reported in Mining
Monthly to be hitting supply chain issues thanks to COVID 19. Northern Territory
granted final approval to Core Lithium for that territory’s first lithium mine. The NT
also progressing Renewable Energy development programmes. All mining
operators having to urgently bring in new health & safety measures to be COVID 19
compliant.
Deal activity stopped in the Mining Support Services space with no transactions of
note recorded globally for the week. Engineering, Environmental and rehabilitation
continued to see deal activity with 118 deals announced, completed or withdrawn
globally over the week. The vast majority of completions appear to be strategic
stakes being taken – between 5% and 25%. Deals of note include:
• Water rehab company Earth System Science being acquired by Founders
Consultants (Japan)
• ABB & Hitachi combined to acquire the 25% of ABB Power Products & Systems
in India that they do not own already (India)
• Calera Capital combined with management to acquire Thayer Power &
Communication an Ohio based maintenance service provider to the utility &
telecom’s sector (USA)
• An Investor group acquired 60% of Ley Choon (Yahtai) Eco Green Construction
Materials – a distributor of construction materials (Singapore)
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WINNER:
BOUTIQUE
INVESTMENT
BANKING FIRM
OF THE YEAR
LCC Asia Pacific Insights | Australian Engineering, Contractors & Services Report Page 1Sources: Thomson Reuters Eikon, LCC Research
Volatility in equities and currencies settled (a bit) and the oil price was given a short term kick after one of President Trump’s tweets.
As there are growing concerns amongst the business community and media commentators on the level of debt Australia will be
taking on so rapidly (currently over AUD $200 billion spend) at least some comment is being fielded on infrastructure and
construction spend to maintain workforce continuity. During the week NSW varied construction worksite practices to allow certain
construction activities to be conducted on weekends – rationalised as an attempt to maintain productivity whilst observing COVID 19
social distance requirements.
Change in basis point
Week YTD 12-months Week YTD 12-months
(Australia) S&P / ASX200 4.6% (10.3%) (18.7%) (Australia) 2-year gov bonds 0.23% (0.04) (1.68) (1.25)
(Japan) Topix (9.2%) (11.3%) (18.2%) (Australia) 5-year gov bonds 0.41% (0.08) (1.51) (1.10)
(Singapore) FTSE Strait Times Index (5.5%) (22.1%) (28.0%) (Australia) 10-year gov bonds 0.77% (0.16) (1.55) (1.11)
(Hong Kong) Hang Seng (1.1%) (10.1%) (22.4%)
(South Korea) Kospi 200 (0.9%) (11.6%) (19.0%) Rate Week YTD 12-months
(US) S&P 500 (2.1%) (0.7%) (13.6%) AUD to USD 0.5995 (2.8%) (15.0%) (15.7%)
(US) Dow Jones Industrial (2.7%) (9.8%) (20.2%)
(UK) FTSE 100 (1.7%) (19.5%) (26.8%)
Percentage change
Index Fixed income Yield

2. Offshore & Oilfield Oil & Gas Services News – Australia & Abroad
• Rystad projected that global exploration & production CAPEX would reach a 13 year low – expecting 2020 to fall
by US $100 billion – down 17% from 2019 levels
• Gazprom Neft’s Omsk refinery advances biological closed loop wastewater treatment plant
• Tullow Oil continues to cot cut CAPEX and Decommissioning budgets – dropping CAPEX to $300m from $350m
and Decommissioning to $65m from $100m (all USD)
Sources: Thomson Reuters Eikon, Company Announcements, LCC research
Ticker News/ Event Ticker News/ Event
ACF
Announced revised debt repayment schedule &
cancelled dividend
VRS
Provides COVID19response including board & leadership
team cost reductions
CIM Continues on market buyback WOR
Awarded 2 contracts in relation to sulfuric acid plants in
Indonesia
DCG BlackRock ceases to be Substantial Shareholder ALQ Updates on Independent Investigation
FWD MUFG increases shareholding to 9.28% ANG Moves interim dividend payment date to 30 September
GNG Enters 3 year O & M Contract with Triangle Energy BLY Defers AGM to 22 July
MND Notes performance rights and options forfeited EHL Directors shares vest under incentive scheme
PGX Notes Contract Additions of A$20m MAH
Extends underground contract with Silver Lake adding
approx. $200m to order book
SRG
Delays dividend payment from 29 April to 29
October
TPP Issues Annual Report
News Headlines and Key Sector Developments
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LCC Asia Pacific Insights | Australian Engineering, Contractors & Services Report
WINNER:
BOUTIQUE
INVESTMENT
BANKING FIRM
OF THE YEAR
We are driven to improve our technical knowledge of the Resource
Services, Oilfield Services, Electrical Services, Infrastructure Services,
Engineering and Resources Sectors, and seek to be an active member
within key industry peak bodies.
Not only does this strategy reinforce our fundamental enjoyment and
drive to better service clients within these Sectors, but it allows us to
continually build deep operational and business knowledge of both
broad and niche industries.
This differentiates LCC from other Advisory Firms as we deliver much
more to the Client Leadership Team and Board of Directors than
“commoditised” transactional experience and “general advice”
LCC’s Sector Association Involvement
Page 2

3. LCC Australian Contractors & Service Providers Index®
(LCCACSPI)
WWW.LCCASIAPACIFIC.COM
The LCCACSPI Index shows the damage done in
this rout vs the ASX 200 over the long term
Market Data Since 2011 Rolling 1 Year Market Data
Market Data Since 2011 Rolling 1 Year Market Data
Both the LCCACSPI and the ASX now strongly in
negative performance territory
All sectors tracking negative – and will likely
continue to do so during the extended period of
flight restrictions and lockdowns
Some recovery from “shock falls” seen – hopefully
not a “dead cat bounce”
WINNER:
BOUTIQUE
INVESTMENT
BANKING FIRM
OF THE YEAR
LCC Asia Pacific Insights | Australian Engineering, Contractors & Services Report Sources: Thomson Reuters Eikon, LCC Research Page 3

4. ASX-Listed Companies – as at close Friday 3rd April 2020
LCC Asia Pacific Insights | Australian Engineering, Contractors & Services Report Sources: Thomson Reuters Eikon, LCC Research
WWW.LCCASIAPACIFIC.COM
WINNER:
BOUTIQUE
INVESTMENT
BANKING FIRM
OF THE YEAR
Page 4
Ticker Company Name
Market Cap
(A$ m)
Open Price
(A$)
Close Price
(A$)
Week High
(A$)
Week Low
(A$)
Volume
Trend
EV/
EBITDA
EV/
EBIT
Engineering Services
ACF.AX Acrow Formwork and Construction Services 54 0.17 0.25 0.28 0.17 ▲ 38.9% 8.5x 20.2x
AJL.AX AJ Lucas Group Ltd 44 0.04 0.04 0.04 0.04 ▲ 2.9% 6.9x 11.0x
BOL.AX Boom Logistics Ltd 38 0.08 0.09 0.09 0.08 ▼ (1.1%) 4.7x n.m.
BPP.AX Babylon Pump & Power Ltd 13 0.01 0.02 0.02 0.01 ▲ 15.4% 11.3x n.m.
BSA.AX BSA Ltd 114 0.26 0.26 0.27 0.26 ▲ 2.0% 3.1x 4.0x
CDD.AX Cardno Ltd 117 0.25 0.26 0.25 0.24 ▲ 13.0% 4.4x 9.7x
CIM.AX CIMIC Group Ltd 7,478 21.28 23.10 22.93 19.77 ▲ 6.5% 3.8x 6.6x
CVL.AX Civmec Ltd 164 0.43 0.42 0.42 0.35 ▼ (2.4%) 10.2x 16.2x
DCG.AX Decmil Group Ltd 26 0.20 0.11 0.13 0.07 ▼ (73.2%) 0.8x 0.9x
DOW.AX Downer EDI Ltd 1,873 2.81 3.15 3.22 2.66 ▲ 11.7% 5.3x 11.4x
EGN.AX Engenco Ltd 133 0.41 0.42 0.42 0.41 ▲ 9.1% 10.2x 16.8x
FWD.AX Fleetwood Corp Ltd 111 1.17 1.16 1.19 1.15 ▼ (1.3%) 2.8x 6.1x
GNG.AX GR Engineering Services Ltd 112 0.70 0.72 0.70 0.60 ▼ (4.0%) n.m. n.m.
JLG.AX Johns Lyng Group Ltd 484 2.01 2.18 2.16 2.01 ▲ 7.4% 15.8x 19.1x
LCM.AX LogiCamms Ltd 28 0.14 0.14 0.14 0.13 ▲ 7.7% 5.1x 6.9x
LLC.AX LendLease Group 5,840 9.50 10.34 10.43 9.50 ▲ 8.5% 11.2x 13.4x
LYL.AX Lycopodium Ltd 157 3.90 3.90 3.92 3.73 ▼ (3.7%) 1.4x 1.6x
MCE.AX Matrix Composites & Engineering Ltd 21 0.19 0.20 0.20 0.18 ▲ 5.3% 14.8x n.m.
MND.AX Monadelphous Group Ltd 905 9.00 9.58 10.40 8.00 ▲ 2.4% 8.4x 11.3x
PGX.AX Primero Group Ltd 30 0.16 0.17 0.18 0.15 ▲ 21.4% 3.7x 4.5x
RDG.AX Resource Development Group Ltd 10 0.02 0.02 0.02 0.02 — 0.0% 1.3x n.m.
SND.AX Saunders International Ltd 39 0.38 0.38 0.38 0.38 — 0.0% n.m. n.m.
SRG.AX SRG Global Ltd 104 0.21 0.23 0.22 0.21 ▲ 9.5% 7.2x n.m.
SSM.AX Service Stream Ltd 754 1.74 1.85 1.83 1.70 ▲ 4.8% 7.1x 9.4x
SXE.AX Southern Cross Electrical Engineering Ltd 105 0.43 0.42 0.44 0.42 ▲ 2.4% 2.3x 2.9x
SOP.AX SML Corporation Ltd 6 0.02 0.03 0.03 0.02 ▲ 13.0% n.m. n.m.
TPP.AX Tempo Australia Ltd 10 0.03 0.03 0.03 0.03 ▲ 9.7% n.m. n.m.
VMG.AX VDM Group Ltd 14 0.00 0.00 0.00 0.00 — 0.0% n.m. n.m.
VMX.AX Valmec Ltd 19 0.18 0.15 0.18 0.15 ▼ (14.3%) 2.4x 3.3x
VRS.AX Veris Ltd 10 0.02 0.03 0.03 0.02 ▲ 23.8% 8.6x n.m.
WOR.AX Worley Ltd 3,429 5.79 6.59 6.57 5.48 ▲ 13.8% 8.0x 10.2x
ZGL.AX Zicom Group Ltd 9 0.05 0.04 0.04 0.04 — 0.0% n.m. n.m.
Mining Services
AMX.AX Aerometrex Ltd 113 1.07 1.18 1.16 1.06 ▲ 12.4% 23.5x 39.7x
ALQ.AX ALS Ltd 2,721 5.28 5.64 5.63 5.13 ▲ 4.6% 9.9x 12.6x
ANG.AX Austin Engineering Ltd 73 0.12 0.13 0.13 0.12 ▲ 4.2% 6.7x 19.2x
BLY.AX Boart Longyear Ltd 53 0.48 0.60 0.57 0.40 ▲ 25.0% 10.5x 21.8x
EHL.AX Emeco Holdings Ltd 311 0.70 0.85 0.83 0.69 ▲ 15.0% 3.5x 6.7x
IMD.AX Imdex Ltd 329 0.86 0.84 0.83 0.78 ▼ (5.6%) 5.8x 8.5x
IPL.AX Incitec Pivot Ltd 3,308 1.88 2.05 2.03 1.82 ▲ 7.9% 10.3x 24.3x
MAH.AX Macmahon Holdings Ltd 436 0.18 0.20 0.20 0.16 ▲ 21.2% 2.8x 7.6x
MIN.AX Mineral Resources Ltd 2,850 13.76 15.12 14.91 13.35 ▲ 10.0% 4.3x 5.6x
MLD.AX MACA Ltd 190 0.62 0.71 0.68 0.58 ▲ 15.4% 4.1x 39.6x
MSV.AX Mitchell Services Ltd 59 0.32 0.30 0.30 0.30 ▼ (7.8%) 4.5x 9.2x
MYE.AX Mastermyne Group Ltd 72 0.57 0.70 0.68 0.57 ▲ 22.8% 3.4x 5.8x
NWH.AX NRW Holdings Ltd 614 1.21 1.44 1.42 1.15 ▲ 17.6% 5.0x 9.8x
ORI.AX Orica Ltd 6,531 15.21 16.10 15.92 14.82 ▲ 4.3% 9.7x 14.3x
PPK.AX PPK Group Ltd 201 1.90 2.33 2.10 1.90 ▲ 29.4% 85.6x 268.0x
PRN.AX Perenti Global Ltd 392 0.56 0.57 0.58 0.50 — 0.0% 2.5x 6.5x
RUL.AX RPMGlobal Holdings Ltd 183 0.72 0.81 0.80 0.68 ▲ 11.0% 17.4x 40.0x
SWK.AX Swick Mining Services Ltd 32 0.10 0.11 0.10 0.10 ▲ 5.0% 2.6x n.m.
Facilities Management & Services
AEI.AX Aeris Environmental Ltd 136 0.45 0.63 0.55 0.45 ▲ 43.2% n.m. n.m.
ALQ.AX ALS Ltd 2,721 5.28 5.64 5.63 5.13 ▲ 4.6% 9.9x 12.6x
HIL.AX Hills Ltd 48 0.19 0.21 0.21 0.17 ▲ 20.6% 8.1x 33.2x
MIL.AX Millennium Services Group Ltd 11 0.24 0.24 0.24 0.22 — 0.0% 10.4x n.m.
ENE.AX Enevis Ltd 11 0.17 0.16 0.16 0.16 — 0.0% n.m. n.m.
TPS.AX Threat Protect Australia Ltd 12 0.05 0.05 0.05 0.05 — 0.0% 11.8x n.m.
Source: Thomson Reuters, LCC research
Weekly
change (%)

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