Edition 332 of the long running weekly report by award winning boutique investment banking firm LCC Asia Pacific This report covers both corporate developments and merger & acquisition activity in sector across Australia

1. ASX200 INDEX
Australia Week Ending
1 November 2019
Date Published
4 November 2019
Edition
332
Australian Engineering, Contractors & Service Providers
Market Performance - Overview
M&A Rumour, Industry News and Private Activity
DAILY PERFORMANCE OF ASX200
Mineral Resources (MIN.AX) announced on 1st November 2019 the completion of the
Wodigna Lithium Project transaction transferring 60% of its stake in Wodigna lithium project
to Albemarle, in exchange for a cash payment of US $820m and 40% interest in the
Kemerton Modules
On the 29th October 2019 AFR’s Street Talk indicated that Service Stream is on of the final
parties in the running for Lendlease’s Services business unit and the AFR also reported NRW
Holdings as being the preferred bidder on the BGC Contracting auction
RPMGlobal (RUL.AX) has unveiled its Underground Metals Solutions (UGMS) optimiser
software for mine planning customers aimed at saving time in determining the most
economical network of tunnels to access and extract ore on each level of a mine
Overseas interesting deals included WSP (Montreal consulting engineering firm) acquiring
Dutch engineering consultancy Livense which consults across infrastructure, water, energy
and the environment.
As we love data here are some quick facts for the Melbourne Cup – firstly Barrier Draws
Barrier 5 has produced the most winners of all time - eight. In the last twenty years - five
barriers have accounted for ten victories –two victories each = Barriers 14, 10, 11, 5 & 22
Barrier 18 has been cursed with ZERO winners in the 84 years since barriers have been
used (all in on that baby then…)
Secondly looking at Saddle Cloths / Best Cup Numbers (worth a pinch of salt as well)
Numbers 4 & 12 lead with eleven wins, Number 1 has ten wins & Number 8 has eight wins
Our prediction as always. The book makers will clean up………….if only we could bet on
them………..
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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
The ASX 200 index closed Friday’s session with the 1.05% lower for the week. The Market closed 70 points lower at 6669.10 amidst
uncertainty surrounding the profitability of the major Banks. However, The Aussie dollar was up by 1.2% and is currently buying 69.04
US cents following the release of stronger-than-expected business confidence data.
The Consumer Price Index (CPI) figures for September was released by the RBA this week. The September quarter rose 0.5%,
pushing the twelve month figure to the September 2019 quarter to 1.7%. This is 0.1% higher in comparison to the twelve month
figure to the June 2019 quarter, which stood at 1.6%.
Index
Percentage change
Fixed income Yield
Change in basis point
Week YTD 12-months Week YTD 12-months
(Australia) S&P / ASX200 (1.0%) 18.1% 14.2% (Australia) 2-year gov bonds 0.83% 0.08 (1.07) (1.18)
(Japan) Topix 1.1% 11.5% 2.1% (Australia) 5-year gov bonds 0.83% 0.07 (1.09) (1.38)
(Singapore) FTSE Strait Times Index 1.6% 5.4% 5.7% (Australia) 10-year gov bonds 1.10% 0.04 (1.22) (1.56)
(Hong Kong) Hang Seng 1.5% 4.7% 6.5%
(South Korea) Kospi 200 0.4% 6.1% 5.8% Rate Week YTD 12-months
(US) S&P 500 0.5% 21.2% 10.8% AUD to USD 0.6904 1.2% (2.1%) (4.2%)
(US) Dow Jones Industrial 0.3% 15.9% 6.6%
(UK) FTSE 100 (1.0%) 7.7% 1.9%
4000
4500
5000
5500
6000
6500
7000
'15 '16 '17 '18 '19
0.0%
0.1%
(0.8%)
(0.4%)
0.1%
(1.0%)
0.0%
1.0%

2. Offshore Oil & Gas Services News – Australia & Abroad
• ConocoPhillips (COP.N) announced that it has awarded a contract to Japanese firm MODEC International to
deliver an offshore floating vessel for its Barossa Gas project located in northern Australia. ConocoPhilips
confirmed that this is the largest contract to be awarded for Barossa project and is a significant step towards
final investment decision expected in 2020 (Reuters)
• Serica Energy announced that it has awarded Maersk Drilling to drill a subsea development well at the Columbus
Development in the Central part of the UK North Sea. The contract is worth $8 million and expected to start in
the 4th quarter of 2020 (Offshore Energy Today)
• Polarcus announced that it has secured a contract for 4D marine seismic acquisition offshore West Africa
(Offshore Energy Today)
• Shell announced that its 3rd quarter profits for 2019 have fallen 15% citing lower energy prices and chemical
margins. Share price was also down more then 1% compared to same quarter last year amid sluggish Global
demand forecast (CNBC).
Sources: Thomson Reuters Eikon, Company Announcements, LCC research
Ticker News/ Event Ticker News/ Event
AJL
Announced that Cuadrilla, the operator of the
Preston New Road exploration site (PNR) has
provided a positive update on the flow testing
operations of PNR2.
ORI
Announced that Mr Lim Chee Onn will retire from the Board
of Directors of Orica limited. The resignation will be
effective from 31st October 2019.
CIM
CIMIC CPB contractors has been awarded the
Contract to upgrade the Melbourne M80 ring road.
The value of the Contract is approximately $331
million.
SOP
Announced the award of a contract to provide Melbourne
Water with an advanced integrated control system for
improved management of a network of water tributaries
valued at $5mn
LLC
Announced appointment of Mrs. Baroness
Margaret Ford as the new Non-Executive Director.
The appointment will be effective 1st March 2020
VRS
Announced the appointment of Dr. Michael Shirley as the
new Chief Executive Officer. Dr Shirley has extensive private
sector management experience including roles as MD with
Aurecon limited and VP with ANZ infrastructure.
MIN
Updated that FIRB has approved the acquisition of
a 60% interest in the Wodigna lithium Project by
Albemarle Corporation.
WOR
Announced that it has concluded the acquisition of 100%
shares in the 3sun Group ltd. UK based offshore wind
energy installation and maintenance business for an
enterprise value of £20 m.
News Headlines and Key Sector Developments
WWW.LCCASIAPACIFIC.COM
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.
We believe in specialization, and have a 15 year track record of
servicing these specific global sectors
LCC’s Sector Association Involvement
Page 2

3. LCC Australian Contractors & Service Providers Index®
(LCCACSPI)
WWW.LCCASIAPACIFIC.COM
The LCCACSPI Index highlight the strong market
recovery of the constituents since mid-2016
(after underperforming from 2011 to 2016)
Since 2011 Rolling 1 year
Since 2011 Rolling 1 year
Over the past year, the sector has broadly tracked
the ASX200, with the index performing strongly
since June 2019 as a result of the strong share
price performance of small cap companies
Longer term all tracked sectors continue to enjoy
strong positive performance, including the LCC
Index
More recent trading activity, however, shows the
“toppish” nature of valuations. Operationally,
however, large contracts continue to be awarded
underpinning fundamental market health
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
(100%)
(50%)
0%
50%
100%
150%
200%
250%
LCCASCPI ASX200
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
35%
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
LCCASCPI ASX200
(100%)
(50%)
0%
50%
100%
150%
200%
250%
300%
350%
LCCACSPI Engineering Services
Mining Services Others
(20%)
(10%)
0%
10%
20%
30%
40%
50%
60%
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
LCCASCPI Engineering Services
Mining Services Others

4. ASX-listed Companies
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 57 0.31 0.32 0.32 0.31 ▲ 3.2% 6.5x 10.1x
AJL.AX AJ Lucas Group Ltd 83 0.11 0.11 0.14 0.11 — 0.0% 11.7x 17.6x
BOL.AX Boom Logistics Ltd 68 0.16 0.16 0.16 0.16 ▼ (3.1%) 6.1x n.m.
BPP.AX Babylon Pump & Power Ltd 14 0.02 0.02 0.02 0.02 ▲ 5.3% 190.3x n.m.
BSA.AX BSA Ltd 175 0.40 0.41 0.41 0.40 ▼ (1.2%) 4.9x 6.1x
CDD.AX Cardno Ltd 232 0.57 0.52 0.53 0.51 ▼ (5.5%) 5.3x 9.5x
CIM.AX CIMIC Group Ltd 10,700 34.32 33.01 33.68 32.64 ▼ (3.6%) 5.6x 9.2x
CVL.AX Civmec Ltd 192 0.43 0.43 0.43 0.43 — 0.0% 13.4x 26.7x
DCG.AX Decmil Group Ltd 206 0.86 0.86 0.86 0.85 ▲ 0.6% 5.2x 5.8x
DOW.AX Downer EDI Ltd 4,794 8.18 8.05 8.19 7.99 ▼ (0.6%) 7.7x 14.1x
EGN.AX Engenco Ltd 166 0.53 0.53 0.53 0.53 ▲ 1.0% 9.5x 12.7x
FWD.AX Fleetwood Corp Ltd 212 2.15 2.24 2.23 2.14 ▲ 4.7% 5.2x 8.0x
GNG.AX GR Engineering Services Ltd 121 0.80 0.79 0.79 0.76 ▲ 3.3% 9.1x 10.7x
JLG.AX Johns Lyng Group Ltd 412 1.80 1.85 1.86 1.80 ▲ 2.5% 17.8x 21.0x
LCM.AX LogiCamms Ltd 42 0.20 0.21 0.21 0.19 ▲ 5.0% 28.6x 30.0x
LLC.AX LendLease Group 10,564 18.25 18.69 18.53 18.12 ▲ 3.4% 43.9x 79.5x
LYL.AX Lycopodium Ltd 220 5.30 5.53 5.31 5.27 ▲ 4.5% 4.4x 4.5x
MND.AX Monadelphous Group Ltd 1,450 15.51 15.34 15.51 15.20 ▼ (1.1%) 14.1x 17.8x
PGX.AX Primero Group Ltd 61 0.40 0.41 0.40 0.39 ▲ 1.3% 4.0x 4.5x
RDG.AX Resource Development Group Ltd 10 0.02 0.02 0.02 0.02 ▲ 6.7% 1.4x 53.2x
SND.AX Saunders International Ltd 26 0.27 0.25 0.27 0.25 ▼ (7.4%) n.m. n.m.
SRG.AX SRG Global Ltd 179 0.41 0.40 0.40 0.40 — 0.0% 9.7x 194.9x
SSM.AX Service Stream Ltd 1,053 2.57 2.58 2.56 2.50 ▲ 0.4% 11.1x 13.5x
SXE.AX Southern Cross Electrical Engineering Ltd 136 0.56 0.55 0.56 0.55 ▼ (2.7%) 3.7x 4.6x
SOP.AX SML Corporation Ltd 11 0.05 0.05 0.05 0.05 — 0.0% 67.1x n.m.
TPP.AX Tempo Australia Ltd 11 0.05 0.04 0.05 0.04 ▼ (6.4%) n.m. n.m.
VMG.AX VDM Group Ltd 14 0.00 0.00 0.00 0.00 ▼ (33.3%) n.m. n.m.
VMX.AX Valmec Ltd 36 0.30 0.29 0.30 0.29 ▼ (5.0%) 4.6x 6.1x
VRS.AX Veris Ltd 27 0.07 0.07 0.07 0.07 ▲ 5.8% 7.7x n.m.
WOR.AX Worley Ltd 7,117 13.68 13.66 13.75 13.30 ▼ (0.2%) 18.5x 22.4x
Mining Services
ASL.AX Perenti Global Ltd 1,574 2.24 2.29 2.24 2.18 ▲ 1.3% 6.7x 17.3x
ALQ.AX ALS Ltd 3,898 8.15 8.07 8.12 8.06 ▼ (0.2%) 12.9x 16.4x
ANG.AX Austin Engineering Ltd 110 0.18 0.19 0.18 0.18 ▲ 11.8% 7.0x 10.8x
BLY.AX Boart Longyear Ltd 171 0.01 0.01 0.01 0.01 ▼ (7.1%) n.m. n.m.
EHL.AX Emeco Holdings Ltd 578 1.88 1.79 1.84 1.76 ▼ (4.3%) 5.1x 9.2x
IMD.AX Imdex Ltd 618 1.47 1.59 1.55 1.47 ▲ 7.8% 11.3x 15.6x
IPL.AX Incitec Pivot Ltd 5,547 3.47 3.45 3.43 3.40 ▼ (0.3%) 11.9x 21.9x
MAH.AX Macmahon Holdings Ltd 464 0.20 0.22 0.21 0.20 ▲ 7.5% 3.0x 7.6x
MIN.AX Mineral Resources Ltd 2,697 13.57 14.30 14.28 13.54 ▲ 7.1% 8.4x 11.2x
MLD.AX MACA Ltd 255 0.95 0.95 0.95 0.93 ▲ 0.5% 7.3x 106.3x
MSV.AX Mitchell Services Ltd 101 0.06 0.06 0.06 0.06 ▲ 3.6% 4.6x 8.1x
MYE.AX Mastermyne Group Ltd 111 1.06 1.09 1.06 1.05 ▲ 3.8% 4.8x 8.2x
NWH.AX NRW Holdings Ltd 849 2.37 2.25 2.35 2.21 ▼ (6.3%) 6.1x 10.5x
ORI.AX Orica Ltd 8,727 23.79 22.90 23.32 22.81 ▼ (3.3%) 12.3x 18.1x
RUL.AX RPMGlobal Holdings Ltd 182 0.91 0.84 0.86 0.82 ▼ (6.7%) 26.2x 82.9x
SWK.AX Swick Mining Services Ltd 62 0.23 0.23 0.23 0.23 — 0.0% 3.3x 23.3x
Marine Services
ASB.AX Austal Ltd 1,492 4.15 4.18 4.07 3.95 ▲ 1.2% 10.33 15.06
MCE.AX Matrix Composites & Engineering Ltd 35 0.36 0.35 0.36 0.35 ▼ (11.5%) n.m. n.m.
MRM.AX MMA Offshore Ltd 165 0.19 0.19 0.19 0.19 ▼ (1.3%) 12.2x n.m.
NMS.AX Neptune Marine Services Ltd 17 0.28 0.28 0.28 0.28 — 0.0% 14.3x n.m.
VEE.AX VEEM Ltd 72 0.55 0.55 0.55 0.54 — 0.0% 17.7x 29.3x
ZGL.AX Zicom Group Ltd 18 0.09 0.08 0.09 0.08 ▼ (5.8%) 4.5x 68.5x
Facilities Management & Services
AEI.AX Aeris Environmental Ltd 53 0.25 0.25 0.25 0.24 ▲ 2.0% n.m. n.m.
ALQ.AX ALS Ltd 3,898 8.15 8.07 8.12 8.06 ▼ (0.2%) 12.9x 16.4x
GMG.AX Goodman Group 26,345 14.37 14.39 14.30 14.13 ▲ 0.5% 56.9x 56.9x
HIL.AX Hills Ltd 45 0.20 0.20 0.21 0.20 ▼ (4.9%) 11.5x n.m.
MIL.AX Millennium Services Group Ltd 17 0.34 0.36 0.34 0.31 ▲ 9.1% n.m. n.m.
ENE.AX Enevis Ltd 10 0.15 0.15 0.15 0.15 — 0.0% 20.9x 34.1x
TPS.AX Threat Protect Australia Ltd 31 0.13 0.15 0.15 0.13 — 0.0% 28.1x n.m.
UBN.AX Urbanise com Ltd 35 0.06 0.05 0.06 0.05 ▼ (8.9%) n.m. n.m.
Weekly
change (%)

5. lccasiapacific.com.au SYDNEY | BRISBANE | NEW YORK
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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
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