Lincoln Crowne & Company Engineering & Contracting Weekly Update Edition 121 for the week ended 31 July 2015.

1. Report No. 121, 31 July 2015 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.
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WEEKLYAustralianEngineering&MiningServices
M&A Rumour and Activity
The Australian market finished the week 2.45% higher with the S&P / ASX100 ending at 4762 points as Beijing moves to calm the Chinese equity
markets following sharp drops in the Shanghai Composite. The Australian dollar strengthened 0.76% for the week to end at US73.35, ahead of the
Reserve Bank of Australia’s meeting on Tuesday, where the central bank is expected to hold the cash rate at 2.00%.
SRG Limited (ASX:STS) had, on 31 July 2015, completed the acquisition of privately-held specialist construction contractor group, CCM Group
Australia Pty Ltd (“CCM”) for $2.35 million (with earn-out payments subject to agreed performance in FY16-FY18). CCM generated $8 million in
revenue for FY15, and the acquisition will support STS’ growth strategy, with CCM’s specialist skillset, reputation and position in WA and NT
complementing STS’ existing remedial services in eastern seaboard market.
New York-based hedge fund Litespeed Management had increased its stake in Bradken Limited (ASX:BKN) to 8.66% in the midst of BKN’s
proposed merger with Magotteaux (a Sigdo Kippers’s subsidiary) and the $70 million investment by Sigdo Koppers and CHAMP Private Equity.
Litespeed Management is an event driven hedge fund with focus on special situations, distressed securities and bankruptcies, and had previously taken
on an activist role in its investments.
Chonlin Environmental Corporation Ltd has agreed to acquire Darco Engineering (Taiwan) Co. Ltd from Darco Water Technologies Limited
(SGX:5CB) for TWD30 million ($1.3 million) on 27 July 2015. Darco Engineering (Taiwan) Co., Ltd. are engaged in the design, fabrication and
installation of water and waste water pollution control engineering and environmental monitoring system.
Mitsubishi Nichiyu Forklift Co.,Ltd and Mitsubishi Heavy Industries Ltd. (TSE:7011) agreed to acquire UniCarriers Holdings Corporation for
approximately ¥110 billion ($1.2 billion) on 31 July 2015. UniCarriers Holdings Corporation manufactures and sells transportation machinery which
includes forklifts, container carriers, transfer cranes, and other material handling products.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
ANG Entered into a definite agreement relating to the $20m subordinated loan
from LIM Advisors Special Situations Fund
MND Announced that it has been awarded a combined $c.130m worth of new
construction and maintenance contracts
CDD CFO Mr Graham Yerbury had resigned, and a search process for a new
CFO has commenced
NWH Awarded a 2-year $140m contract by Rio Tinto for contract mining and
ore haulage at the Nammuldi Mine. The project will commence in
August 2015 and will utilise a significant amount of NWH’s equipment
DOW Received two letter of awards from Adani Mining Pty Ltd advising of its
intention to enter into contracts in relation to the Coal Handling and
Preparation Plant (CHPP) at the proposed Carmichael Coal Mine in
Central Queensland. The first is an EPC contract worth $420m in a JV
with POSCO while the second is a O&M contract for the CHPP worth
$260m over the initial five year term with two additional one year options
SWL Mr David Wilson, a newly appointed non-executive director, has agreed
to assume the role of Acting MD and CEO until Mr John Kirkwood takes
up the permanent position in October 2015
EHL Provided FY15 4Q operational update, with unaudited revenue of $65.3m
(up 21% from the previous corresponding period) while group utilisation
rate averaged 74%. Ongoing business improvement is expected to realise
$14m savings a year from FY16
TSE Reaffirmed FY15 underlying EBITDA guidance of $260-280m
MRM Expects to book a non-cash impairment of c.$120m (before tax) against its
assets for FY15 ($20m against goodwill for Dampier Supply Base and
$100m for the company’s vessel fleet)
WTP Signed a $95m contract with JGL Properties to construct Stage 1 and
Stage 2 of the Newstead Series residential project (300 apartments and
townhomes across four boutique towers) in Brisbane
MAH Announced that it has utilised cash surplus to repay its bank facilities
following the sale of its Mongolian subsidiary for c.$80m. MAH has a net
cash of $50m at end of FY15, and has current tendering pipeline of $2b
WTP Announced the retirement of Mr Robert Lette as director
MLD Received a letter of award from Avanco Resources Limited in relation to
the contract for the provision of opsen pit mining services worth $120m
over five years at Avanco’s Antas North Copper Project in Brazil
 Contract Wins Source: Capital IQ, LCC research
 Contract Losses

2. Report No. 121, 31 July 2015 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 Company Name (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL AJ Lucas Group Limited 80 0.30 0.30 0.31 0.30 — 0.0% 12.0x NM
ASL Ausdrill Limited 94 0.34 0.30 0.34 0.29 ▼ -10.4% 3.4x 9.6x
AAX Ausenco Limited 60 0.34 0.33 0.36 0.31 ▼ -4.4% NM NM
ANG Austin Engineering Limited 58 0.45 0.46 0.46 0.44 ▲ 2.2% 17.4x NM
BLY Boart Longyear Limited 107 0.12 0.12 0.12 0.12 ▼ -4.2% 38.3x NM
BKN Bradken Limited 202 1.20 1.18 1.24 1.17 ▼ -1.7% 58.9x NM
BYL Brierty Limited 48 0.37 0.38 0.38 0.37 ▲ 2.7% 3.6x 5.7x
BOL Boom Logistics Limited 57 0.12 0.12 0.12 0.12 ▲ 4.3% 4.8x 50.8x
BSA BSA Limited 74 0.18 0.18 0.18 0.17 — 0.0% 6.0x 18.6x
CDD Cardno Limited 474 2.85 2.87 2.92 2.75 ▲ 0.7% 6.0x 7.7x
CGH Calibre Group Limited 60 0.15 0.17 0.18 0.14 ▲ 13.3% 1.4x 3.1x
CIM CIMIC Group Limited 7,051 20.75 20.83 20.84 20.05 ▲ 0.4% 10.7x 36.2x
COF Coffey International Limited 41 0.17 0.16 0.17 0.15 ▼ -3.0% 5.2x 8.4x
DCG Decmil Group Limited 182 1.09 1.09 1.12 1.07 ▼ -0.5% 1.7x 1.8x
DSB DeltaSBD Limited 3 0.06 0.06 0.06 0.06 ▲ 1.7% 24.7x NM
DOW Downer EDI Limited 1,969 4.55 4.55 4.60 4.43 — 0.0% 4.0x 6.9x
EAL E&A Limited 23 0.16 0.17 0.17 0.16 ▲ 6.3% 5.7x 7.4x
EGN Engenco Limited 31 0.10 0.10 0.10 0.09 ▲ 5.3% 4.8x NM
EHL Emeco Holdings Limited 46 0.08 0.08 0.09 0.07 ▲ 5.2% 8.6x NM
EVZ EVZ Limited 2 0.01 0.01 0.01 0.01 — 0.0% 36.1x NM
FWD Fleetwood Corporation Limited 108 1.80 1.78 1.80 1.74 ▼ -1.4% 5.7x 15.7x
GCS Global Construction Services Limited 100 0.50 0.50 0.51 0.49 — 0.0% 6.1x 11.6x
GNG GR Engineering Services Limited 158 1.06 1.05 1.09 1.05 ▼ -0.9% 7.1x 8.9x
HDX Hughes Drilling Pty Limited 38 0.18 0.18 0.18 0.18 — 0.0% 3.5x 6.3x
IMD Imdex Limited 53 0.25 0.25 0.25 0.23 — 0.0% NM NM
LCM Logicamms Limited 54 0.78 0.78 0.78 0.77 — 0.0% 4.8x 6.4x
LYL Lycopodium Limited 50 1.26 1.26 1.26 1.26 — 0.0% 12.6x NM
MLD MACA Limited 166 0.72 0.72 0.74 0.69 — 0.0% 1.0x 1.7x
MAH MacMahon Holdings Limited 101 0.08 0.08 0.09 0.08 ▼ -3.6% 1.4x 5.9x
MYE Mastermyne Limited 17 0.16 0.19 0.19 0.16 ▲ 15.6% 2.1x 7.0x
MIN Mineral Resources Limited 1,017 5.56 5.42 5.60 5.30 ▼ -2.5% 3.5x 8.0x
MCE Matrix Composites & Engineering 41 0.42 0.44 0.46 0.41 ▲ 4.8% 1.0x 2.4x
MND Monadelphous Group Limited 797 8.70 8.55 9.06 8.38 ▼ -1.7% 3.2x 3.7x
MRM MMA Offshore Limited 202 0.51 0.55 0.57 0.50 ▲ 7.9% 2.5x 4.4x
NOD Nomad Building Solutions Limited 34 0.07 0.07 0.08 0.07 ▲ 5.7% NM NM
NWH NRWHoldings Limited 52 0.18 0.19 0.21 0.18 ▲ 5.7% 1.4x 12.4x
OTC OTOC Limited 32 0.10 0.12 0.12 0.10 ▲ 20.0% 5.1x 13.1x
PRG Programmed Maintenance Services 284 2.43 2.39 2.47 2.39 ▼ -1.6% 5.3x 6.5x
RCR RCR Tomlinson Limited 255 1.79 1.85 1.86 1.79 ▲ 3.4% 4.1x 6.1x
SND Saunders International Limited 43 0.57 0.55 0.57 0.55 ▼ -3.5% 2.4x 2.6x
SDM Sedgman Limited 175 0.78 0.77 0.80 0.76 ▼ -1.3% 3.5x 6.5x
SKE SKILLED Group Limited 362 1.55 1.54 1.55 1.51 ▼ -0.3% 6.4x 7.7x
SSM Service Stream Limited 131 0.33 0.34 0.34 0.33 ▲ 3.0% 9.1x 11.3x
SWL Seymour Whyte Limited 100 1.21 1.14 1.24 1.12 ▼ -5.8% 4.0x 5.0x
SXE Southern Cross Electrical Engineering 59 0.40 0.37 0.40 0.37 ▼ -6.3% 1.7x 3.2x
STS SRG Limited 42 0.65 0.67 0.67 0.64 ▲ 2.3% 2.4x 10.0x
SWK Swick Mining Services Limited 23 0.14 0.14 0.14 0.13 ▲ 3.7% 2.2x 9.2x
TPP Tempo Australia Limited 10 0.05 0.05 0.06 0.05 ▲ 6.3% NM NM
TTN Titan Energy Services Limited 5 0.07 0.07 0.07 0.07 ▼ -10.8% 1.4x 2.1x
TSE Transfield Services Limited 661 1.28 1.29 1.33 1.26 ▲ 0.8% 5.2x 7.9x
UGL UGL Limited 328 2.13 1.99 2.18 1.97 ▼ -6.8% NM NM
VMG VDM Group Limited 24 0.01 0.01 0.01 0.00 — 0.0% NM NM
WDS WDS Limited 22 0.15 0.15 0.17 0.14 ▲ 3.4% 2.9x NM
WOR WorleyParsons Limited 2,277 9.37 9.20 9.59 8.87 ▼ -1.8% 6.1x 6.9x
WTP 161 0.84 0.85 0.89 0.84 ▲ 1.2% 0.9x 2.0x
Source: Capital IQ, LCC research
Watpac Limited