Welcome to the latest edition of our Weekly Engineering Market Research Update – Edition 500. 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: 500
Nicholas Assef
Industry Lead
naa@lccapac.com
Joe Brereton
Associate Director
jmb@lccapac.com
The transition away from gas consumption in
Australia is crucial to achieve emissions
reduction targets and provide cost savings for
households. However, this shift presents
policymakers and regulators with significant
challenges.
Natural gas contributes 22 percent of
Australia's greenhouse emissions, primarily
driven by LNG production, manufacturing, and
power generation. However, the largest gas
users are the 5 million households relying on
gas for cooking, hot water, and heating. The
sheer number of consumers in this area
means that transitioning them to alternative
energy sources will require an extended
campaign.
Biomethane, which is chemically identical to
natural gas and considered carbon neutral,
could serve as a replacement. However, the
limited availability of commercially viable
biomethane in Australia makes it an ineffective
substitute. While hydrogen is another
alternative, it currently appears to be more
expensive than electricity. Estimates suggest
that hydrogen could achieve cost parity with
electricity by the late 2040s, making it a less
viable alternative in the near term.
Electrification is the most cost-effective and
environmentally friendly option for homes and
small businesses. It already fulfills the same
functions as natural gas and is steadily moving
towards net-zero emissions. However,
electrification cannot compete with hydrogen
for high-temperature heat in industry or
chemical feedstock applications. In such
cases, biomethane could provide a viable
pathway.
To ensure successful electrification,
governments should implement three key
strategies. Firstly, they should establish clear
end-dates for gas use and prohibit new gas
connections. Secondly, in the short term,
governments should provide financial
assistance to upgrade social, community, and
Indigenous housing. Additionally, low-cost
financing options for homeowners and tax
incentives for landlords should be introduced
for a limited period to stimulate the transition
and drive down appliance costs. Lastly, strong,
consistent, and compelling communication
efforts should be employed to encourage
households to switch to electricity during
appliance replacements, renovations, or new
home construction.
The electrification of households and small
businesses poses challenges for existing gas
network businesses, as their core assets will
be devalued. These businesses may argue that
they deserve compensation for market risks
and previous requirements to connect new
consumers. However, a complete return on
investment approach could lead to a "death
spiral" where escalating prices fail to keep
pace with departing consumers. Balancing the
interests of these businesses and the need for
a reliable gas network falls upon governments,
who must collaborate to determine how and
when these costs are to be paid and by whom.
Similar challenges are being addressed by
governments in Europe and elsewhere.
The transition from gas to electricity in
Australia is a necessary and complex
endeavour, vital for meeting emissions-
reduction targets and improving affordability
for households. Biomethane and hydrogen
offer potential alternatives in specific
industries, while electrification emerges as the
most cost-effective and environmentally
friendly option for homes and small
businesses. Governments must play a pivotal
role in setting clear goals, providing financial
support, and facilitating effective
communication to encourage the adoption of
electricity. Collaboration with gas network
businesses is necessary to manage the
transition's financial implications. With
proactive leadership, Australia can pave the
way toward a cleaner, more affordable, and
healthier energy future.
Source: Capital IQ; LCC Analysis
Australian Market
Macro Market Research
Page 1
Engineering, Industrial Services & Engineering Innovation
The Path to Electrification: Shifting Away from Gas in Australia
Week Ending: 9 June 2023

2. LCC Asia Pacific Research | Australian Engineering, Industrial Services & Engineering Innovation
Australian Macroeconomic Update
The S&P ASX 200 lifted last week, increasing 1.8% to
end the week.
Westpac expects a further final increase in the cash
rate of 0.25% to 4.6% at the August Board meeting, for
a peak in the cycle of 4.6%. This extension of the
tightening cycle to August, with the ongoing evidence of
a tight labour market, now indicates that the beginning
of the easing cycle will be delayed to May.
Next year, with labour markets remaining tight for longer
than expected back in March, the RBA Board will require
further convincing that the inflation path will land within
the 2–3% target zone by June 2025.
Westpac expect 25 basis point rate cuts in May; August
and November 2024 prior to further cuts in 2025
eventually bringing the cash rate below 3%.
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
0.66
0.60
0.62
0.64
0.66
0.68
0.70
0.72
0.74
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-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
3.4
3.4
2.6
2.3
1.8
1.2
1.1
(0.5)
Tokyo Price Index
Hang Seng Index
S&P 500
Straits Times
S&P ASX 200
Dow Jones Industrial
FTSE 100 (GBP)
KOSPI 200 Index
21.6
18.6
14.8
3.5
3.0
2.6
1.3
0.3
Tokyo Price Index
KOSPI 200 Index
S&P 500
Dow Jones Industrial
S&P ASX 200
FTSE 100 (GBP)
Hang Seng Index
Straits Times

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
9.1
17.2
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-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 (4.2%) 14.4% (13.3%) (0.8%) (4.2%)
Dividend Yield 3.5% 3.8% 2.7% 3.1% 5.7%
Price/Earnings 18.9x 27.9x 16.6x 19.8x (32.2%)
Price/Book 2.3x 3.0x 2.0x 2.5x (6.2%)
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
19.1x
14.0x
16.0x
18.0x
20.0x
22.0x
24.0x
26.0x
28.0x
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-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)
Ticker News/ Event
AMX
Aerometrex announced it has received a $1.69m order to deliver off-the-shelf datasets to an
Australian Federal Government Agency with a delivery date of 26 June 2023.
C79
Chrysos Corporation announced it has appointed Greg Holt as an independent Non-Executive
Director, effective 14 June 2023.
IMB
Intelligent Monitoring Group announced it acquiring Tyco Australia, a company that provides
electronic security products and systems for homes and businesses, for $45m. The acquisition will
be funded by new $80m 3-year debt facility which will also be used to refinance existing debt.
K2F
K2fly announced it was awarded a 3-year $564k contract to provide its Resource Disclosure
solution to Eramet, effective immediately.
PV1
Provaris Energy announced it has partnered with Norwegian Hydrogen AS to develop a 40kpta
green hydrogen production plant in Norway.
66.7%
7.3%
5.6%
4.0%
2.4%
(1.4%)
(6.7%)
(7.3%)
(10.4%)
(10.5%)
ASX:IMB
ASX:ASB
ASX:IMD
ASX:VYS
ASX:RUL
ASX:MAD
ASX:PV1
ASX:MYG
ASX:AMX
ASX:AQN
18.8x
15.1x
14.0x
11.3x
11.2x
8.5x
8.4x
7.4x
5.2x
4.0x
ASX:MAD
ASX:IMB
ASX:MYG
ASX:ASB
ASX:ALQ
ASX:IMD
ASX:HIL
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 0.03 0.03 0.03 — 0.0% NM NM
ASX:AMX Aerometrex Limited 28 0.32 0.30 0.35 ▼ -10.4% 4.0x NM
ASX:ALQ ALS Limited 5,664 11.50 11.70 11.76 ▲ 2.3% 11.2x 14.8x
ASX:AQN Aquirian Limited 14 0.20 0.17 0.20 ▼ -10.5% 5.2x 26.8x
ASX:ASB Austal Limited 902 2.33 2.50 2.50 ▲ 7.3% 11.3x 27.5x
ASX:DUG DUG Technology Ltd 139 1.17 1.18 1.19 ▲ 0.4% 10.9x 27.0x
ASX:HIL Hills Limited 12 NA 0.02 NA — 0.0% 8.4x NM
ASX:IMD Imdex Limited 960 1.79 1.90 1.92 ▲ 5.6% 8.5x 12.3x
ASX:IMB Intelligent Monitoring Group Limited 26 NA 0.20 0.23 ▲ 66.7% 15.1x NM
ASX:K2F K2fly Limited 16 0.09 0.09 0.11 — 0.0% NM NM
ASX:LBL LaserBond Limited 82 0.77 0.75 0.79 ▲ 1.4% 9.1x 13.8x
ASX:MAD Mader Group Limited 1,012 5.15 5.06 5.34 ▼ -1.4% 18.8x 23.9x
ASX:MCE Matrix Composites & Engineering Ltd 65 0.29 0.30 0.31 ▲ 1.7% NM NM
ASX:MYG Mayfield Group Holdings Limited 34 0.41 0.38 0.41 ▼ -7.3% 14.0x 73.5x
ASX:ORI Orica Limited 6,953 15.07 15.31 15.56 ▲ 1.7% 8.5x 12.9x
ASX:PV1 Provaris Energy Ltd 23 0.04 0.04 0.05 ▼ -6.7% NM NM
ASX:RUL RPMGlobal Holdings Limited 337 1.42 1.48 1.50 ▲ 2.4% NM NM
ASX:SDV SciDev Limited 57 0.33 0.30 0.33 ▼ -6.3% 10.4x 21.1x
ASX:VYS Vysarn Limited 53 0.13 0.13 0.14 ▲ 4.0% 7.4x 19.8x
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
LYL
Lycopodium announced it has executed a $55m contract with Barrick for the Feasibility Study and
Basic Engineering Agreement of the Reko Diq Copper-Gold Project in Pakistan. The study is set to
be completed in Q4 2024, while the engineering agreement is scheduled for Q2 2025.
MIN
Mineral Resources announced a significant gas discovery has been made at North Erregulla Deep-
1. The company has also suspended is operations at is Onslow Iron project due to a fatality.
SRG
SRG Global announced it has been awarded a 2-year $40m contract from Lendlease to provide
specialist facades works at One Circular Quay, effective immediately.
6.3%
5.2%
4.9%
4.6%
4.4%
(2.9%)
(3.8%)
(5.5%)
(6.0%)
(7.4%)
ASX:ACF
ASX:SRG
ASX:CDD
ASX:MIN
ASX:DOW
ASX:IPL
ASX:SXE
ASX:JLG
ASX:MGH
ASX:DDB
14.7x
14.6x
12.1x
11.5x
10.9x
5.5x
4.2x
4.1x
3.9x
2.7x
ASX:WOR
ASX:JLG
ASX:MGH
ASX:FWD
ASX:SSM
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
204 0.72 0.77 0.78 ▲ 6.3% 7.6x 12.6x
ASX:CDD Cardno Limited 17 0.41 0.43 0.43 ▲ 4.9% NM 0.3x
ASX:DOW Downer EDI Limited 2,521 3.60 3.76 3.82 ▲ 4.4% 8.4x 21.0x
ASX:DUR Duratec Limited 281 1.16 1.15 1.20 ▼ -0.9% 9.0x 12.9x
ASX:DDB Dynamic Group Holdings Limited 34 NA 0.25 0.27 ▼ -7.4% 4.1x NM
ASX:FWD Fleetwood Limited 188 1.94 2.00 2.00 ▲ 2.3% 11.5x NM
ASX:GNP GenusPlus Group Limited 181 1.03 1.02 1.05 ▼ -1.0% 7.9x 14.5x
ASX:IPL Incitec Pivot Limited 5,244 2.78 2.70 2.85 ▼ -2.9% 4.2x 5.4x
ASX:JLG Johns Lyng Group Limited 1,527 6.18 5.82 6.41 ▼ -5.5% 14.6x 17.6x
ASX:LYL Lycopodium Limited 410 10.07 10.26 10.27 ▼ -0.1% 6.5x 7.4x
ASX:MGH MAAS Group Holdings Limited 922 3.01 2.82 3.04 ▼ -6.0% 12.1x 18.5x
ASX:MIN Mineral Resources Limited 14,068 69.20 73.00 73.50 ▲ 4.6% 8.8x 11.7x
ASX:SND Saunders International Limited 116 1.10 1.08 1.11 ▼ -1.8% 5.7x 6.8x
ASX:SSM Service Stream Limited 471 0.74 0.77 0.77 ▲ 2.0% 10.9x NM
ASX:SXE Southern Cross Electrical Engineering Limited
166 0.67 0.64 0.67 ▼ -3.8% 2.7x 3.4x
ASX:SRG SRG Global Limited 366 0.67 0.71 0.72 ▲ 5.2% 5.5x 10.0x
ASX:SOP Synertec Corporation Limited 101 0.23 0.24 0.24 ▲ 4.4% NM NM
ASX:VRS Veris Limited 43 0.09 0.08 0.09 ▼ -4.5% 3.9x 13.6x
ASX:WOR Worley Limited 8,337 16.30 15.85 16.40 ▼ -2.7% 14.7x 20.8x
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
Top 5/Bottom 5 Weekly Price Change Top 5/Bottom 5 EV/EBITDA Multiple (Latest)
Ticker News/ Event
ANG
Austin Engineering announced it has received purchase orders for 4 haul truck trays from a major
iron ore producer in India with delivery expected in 6 weeks.
EGN
Engenco announced it has partnered with Rio Tinto to bring local iron ore rail car manufacturing
and maintenance to the Pilbara. A facility in Karratha will be built, producing 100 cars over 6 years.
The combined value of the contracts for new cars and existing maintenance services is $150m.
MND
Monadelphous announced it has secured contracts worth $120m for shutdown & maintenance
services and other works for Rio Tinto, BHP, BHP Mitsubishi Alliance, and South 32.
PRN
Perenti, in partnership with ABB, has announced it has been awarded a contract by IGO Limited to
provide a study for the full underground electrification of the Cosmos Nickel Project.
20.6%
6.1%
3.8%
3.0%
2.9%
(3.7%)
(3.8%)
(4.2%)
(4.8%)
(7.1%)
ASX:EGN
ASX:DCG
ASX:PRN
ASX:DDH
ASX:MSV
ASX:MAH
ASX:RDG
ASX:BOL
ASX:BSA
ASX:MYE
21.2x
14.2x
12.9x
11.3x
7.0x
3.1x
2.9x
2.7x
2.6x
1.8x
ASX:RDG
ASX:BSA
ASX:EGN
ASX:MND
ASX:ANG
ASX:PRN
ASX:EHL
ASX:BOL
ASX:DRA
ASX:MAH
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 0.02 — 0.0% NM NM
ASX:ANG Austin Engineering Limited 155 0.28 0.27 0.28 — 0.0% 7.0x 8.6x
ASX:BPP Babylon Pump & Power Limited 15 NA 0.01 0.01 — 0.0% NM NM
ASX:BLY Boart Longyear Group Ltd. 462 1.60 1.56 1.65 ▼ -2.5% 5.0x 9.6x
ASX:BOL Boom Logistics Limited 49 0.12 0.12 0.13 ▼ -4.2% 2.7x 18.4x
ASX:BSA BSA Limited 42 NA 0.59 0.59 ▼ -4.8% 14.2x NM
ASX:DDH DDH1 Limited 334 0.83 0.86 0.86 ▲ 3.0% 3.2x 5.9x
ASX:DCG Decmil Group Limited 27 0.17 0.18 0.18 ▲ 6.1% NM NM
ASX:DRA DRA Global Limited 111 NA 1.88 NA — 0.0% 2.6x 12.2x
ASX:EHL Emeco Holdings Limited 351 0.70 0.68 0.72 ▼ -2.2% 2.9x 8.1x
ASX:EGN Engenco Limited 129 0.38 0.41 0.45 ▲ 20.6% 12.9x 42.4x
ASX:GNG GR Engineering Services Limited 334 2.07 2.07 2.18 — 0.0% 5.7x 6.5x
ASX:MAH Macmahon Holdings Limited 273 0.13 0.13 0.14 ▼ -3.7% 1.8x 5.5x
ASX:MYE Metarock Group Limited 39 0.14 0.13 0.15 ▼ -7.1% NM NM
ASX:MSV Mitchell Services Limited 77 0.34 0.35 0.35 ▲ 2.9% 4.4x NM
ASX:MND Monadelphous Group Limited 1,183 12.28 12.28 12.34 ▲ 0.4% 11.3x 17.3x
ASX:NWH NRW Holdings Limited 1,065 2.33 2.36 2.40 ▲ 2.2% 4.7x 8.1x
ASX:PRN Perenti Limited 846 1.20 1.24 1.25 ▲ 3.8% 3.1x 8.9x
ASX:RDG Resource Development Group Limited 144 0.05 0.05 0.05 ▼ -3.8% 21.2x 25.0x
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.
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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.
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considering growth strategies, business transformation and challenging corporate
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approach, and a tenacity to deliver results.
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