The Australian market ended the week down with the S&P/ASX 100 Index closing lower on Friday. Two deals were announced: MacMahon sold its share of an Hong Kong rail project, allowing it to focus on mining; and Savcor entered an agreement to sell its rehabilitation business subject to approvals. Several Singaporean engineering firms conducted share buybacks.

1. WEEKLY
Australian Engineering & Mining Services
1 November 2013
WWW.LCC.ASIA
M&A Rumour and Activity
The Australian market ended the week down with the S&P/ASX 100 Index closing at 4490 points on Friday. The Australian
dollar also finished weaker at 94.30 US cents. Attention now switches to the Reserve Bank's board meeting on Tuesday
with most expecting interest rates to be left unchanged.
Two deals were announced this week.
MacMahon (ASX: MAH) sold its 25% share of the Express Rail Link project in Hong Kong to Leighton Asia. The sale
marked the end of MAH’s legacy construction projects, allowing the company to focus solely on its mining business.
Savcor (ASX:SAV), an asset maintenance and remediation specialist, entered into an indicative heads of agreement with a
strategic partner in relation to the sale of its Advanced Rehabilitation Technology services business for an undisclosed
amount. The sale is subject to the usual due diligence, legal and shareholder approvals.
3 Singaporean engineering & construction companies announced buybacks in the week including Lum Chang Holdings
(SGX:L19), Jaya Holdings (SGX:J10) and Civmec (SGX:P9D). PPS International (SEHK:8201) also conducted a buyback in
Hong Kong.
News Headlines and Key Sector Developments
Ticker News/Event
Ticker News/Event
DOW
Secured a contract with Bechtel for two electrical and
instrumentation packages for the downstream portion of the
Chevron-operated Wheatstone Project in Western Australia. The
contract, valued at approximately $400M, will commence onsite
late 2014
RCR
Has appointed Mr Andrew Phipps to the position of Chief
Financial Officer. Mr Phipps most recently held the role of
Executive General Manager Finance for UGL’s engineering
business
LEI
Awarded a three year, $249M contract at the Isaac Plains opencut coal mine for Isaac Plains Coal Management Pty Ltd. The
contract includes a range of contract mining services
RQL
Reported 1QFY14 results with revenues of $29.5M and
EBITDA of $3.9M. RQL continues to experience tough trading
conditions during the first quarter of FY14, not dissimilar to
those faced during the second half of FY13
MAH
Works at the Trangie Nevertire Irrigation Scheme project in NSW
are scheduled for completion in the first week of November 2013
SWK
Revenue for the quarter ending September 30, 2013 was
$32.0M (unaudited), down 16% from the corresponding period
a year ago. FY14 guidance provided at $125M to $135M
revenue with an EBITDA margin of between 18 – 20%
MYE
Darren Hamblin, co-founder of MYE, has been elected by the
Board as Chairman, effective from the close of the forthcoming
Annual General Meeting to be held on Monday 25 November 2013
VMG
Entered into a binding term sheet whereby an unsecured loan
facility of up to $4M will be provided by cornerstone investor
H&H Holdings Australia Pty Ltd to VDM
Source: Capital IQ, Thomson Reuters, LCC research
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 1
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2. WEEKLY
Australian Engineering & Mining Services
1 November 2013
Ticker Company Name
AJL
ASL
AAX
ANG
BLY
BKN
BYL
BOL
BSA
CDD
CGH
CLO
COF
DCG
DSB
DOW
EAL
EGN
EHL
EVZ
FWD
FGE
GCS
GNG
HDX
IMD
LEI
LCM
LYL
MLD
MAH
MYE
MIN
MCE
MND
NMS
NOD
NWH
OTC
PRG
RCR
RQL
SND
SDM
SSM
SWL
SXE
STS
SWK
TPP
TSE
UGL
VMG
WDS
WOR
WTP
AJ Lucas Group Limited
Ausdrill Limited
Ausenco Limited
Austin Engineering Limited
Boart Longyear Limited
Bradken Limited
Brierty Limited
Boom Logistics Limited
BSA Limited
Cardno Limited
Calibre Group Limited
Clough Limited
Coffey International Limited
Decmil Group Limited
DeltaSBD Limited
Downer EDI Limited
E&A Limited
Engenco Limited
Emeco Holdings Limited
EVZ Limited
Fleetwood Corporation Limited
Forge Group Limited
Global Construction Services Limited
GR Engineering Services Limited
Hughes Drilling Pty Limited
Imdex Limited
Leighton Holdings Limited
Logicamms Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
Mineral Resources Limited
Matrix Composites & Engineering
Monadelphous Group Limited
Neptune Marine Services Limited
Nomad Building Solutions Limited
NRW Holdings Limited
OTOC Limited
Programmed Maintenance Services
RCR Tomlinson Limited
Resource Equipment Limited
Saunders International Limited
Sedgman Limited
Service Stream Limited
Seymour Whyte Limited
Southern Cross Electrical Engineering
Structural Systems Limited
Swick Mining Services Limited
Tempo Australia Limited
Transfield Services Limited
UGL Limited
VDM Group Limited
WDS Limited
WorleyParsons Limited
Watpac Limited
WWW.LCC.ASIA
Market Cap Open Price Close Price Week High Week Low
(AUD Million)
(AUD)
(AUD)
(AUD)
(AUD)
317
451
198
279
198
1,026
37
90
30
1,036
126
1,127
60
413
22
2,139
87
53
198
12
197
360
99
105
65
152
5,895
125
193
445
188
77
2,099
66
1,676
92
19
378
19
327
486
42
73
183
61
104
163
32
72
7
679
1,218
6
117
5,405
175
1.25
1.56
1.76
4.20
0.47
6.65
0.36
0.20
0.13
6.80
0.45
1.47
0.23
2.54
0.48
4.96
0.76
0.16
0.35
0.06
3.40
4.67
0.58
0.69
0.30
0.84
17.95
1.98
4.95
2.56
0.17
1.09
11.47
0.70
18.90
0.04
0.08
1.44
0.10
2.89
3.84
0.20
0.92
0.87
0.23
1.35
1.12
0.50
0.35
0.05
1.53
8.02
0.01
0.88
22.35
0.99
1.19
1.45
1.61
3.81
0.44
6.06
0.34
0.19
0.13
7.17
0.40
1.45
0.24
2.45
0.47
4.92
0.73
0.17
0.34
0.06
3.26
4.18
0.58
0.70
0.31
0.72
17.48
1.80
4.95
2.58
0.15
1.02
11.28
0.70
18.16
0.05
0.07
1.36
0.10
2.77
3.56
0.17
0.93
0.82
0.22
1.33
1.01
0.51
0.34
0.05
1.33
7.46
0.01
0.81
21.90
0.95
1.30
1.61
1.76
4.20
0.48
6.69
0.38
0.20
0.14
7.23
0.45
1.47
0.25
2.57
0.48
5.09
0.78
0.17
0.37
0.06
3.47
4.70
0.59
0.70
0.32
0.86
18.05
2.05
4.96
2.61
0.17
1.09
11.54
0.71
19.38
0.05
0.08
1.47
0.11
2.89
3.90
0.20
0.93
0.90
0.24
1.36
1.12
0.52
0.35
0.05
1.55
8.04
0.01
0.90
22.50
1.06
1.10
1.44
1.60
3.81
0.42
6.00
0.32
0.18
0.13
6.66
0.40
1.45
0.22
2.43
0.45
4.83
0.73
0.16
0.33
0.06
3.25
4.16
0.55
0.67
0.30
0.67
17.41
1.77
4.85
2.52
0.14
0.99
11.26
0.68
17.92
0.03
0.07
1.34
0.10
2.73
3.46
0.17
0.90
0.82
0.22
1.33
0.98
0.49
0.32
0.05
1.30
7.27
0.01
0.81
21.66
0.95
Weekly Volume
% Change
▼
▼
▼
▼
▼
▼
▼
▼
—
▲
▼
▼
▲
▼
▼
▼
▼
▲
▼
—
▼
▼
—
▲
▲
▼
▼
▼
—
▲
▼
▼
▼
▼
▼
▲
▼
▼
▲
▼
▼
▼
▲
▼
▼
▼
▼
▲
▼
—
▼
▼
▼
▼
▼
▼
-5.2%
-7.4%
-8.8%
-9.3%
-6.5%
-8.9%
-6.9%
-5.0%
0.0%
5.4%
-10.1%
-1.0%
4.4%
-3.5%
-1.1%
-0.8%
-4.6%
6.3%
-1.4%
0.0%
-4.1%
-10.5%
0.0%
1.4%
3.3%
-14.3%
-2.6%
-9.1%
0.0%
0.8%
-9.1%
-6.9%
-1.7%
-0.7%
-3.9%
25.0%
-9.1%
-5.9%
1.0%
-4.2%
-7.3%
-15.0%
1.1%
-5.2%
-4.4%
-1.5%
-9.4%
2.0%
-1.4%
0.0%
-13.4%
-7.0%
-40.0%
-8.5%
-2.0%
-4.0%
EV/
EV/
EBITDA
EBIT
NM
3.3x
4.9x
6.6x
3.8x
8.1x
2.0x
3.8x
3.9x
8.8x
2.8x
6.8x
7.5x
5.4x
2.5x
3.8x
7.5x
NM
3.5x
7.9x
5.9x
2.7x
3.9x
8.2x
4.8x
4.1x
3.6x
8.0x
5.2x
3.6x
1.5x
3.2x
6.5x
6.2x
6.2x
98.1x
1.6x
2.8x
2.2x
6.3x
7.0x
3.3x
7.7x
3.0x
NM
4.1x
4.1x
2.8x
2.4x
NM
6.3x
16.3x
NM
4.4x
10.3x
2.4x
Trend
NM
5.9x
6.3x
8.0x
11.4x
12.1x
3.4x
8.3x
11.6x
10.6x
5.7x
7.1x
13.9x
6.0x
3.5x
6.9x
8.8x
NM
10.3x
10.9x
9.7x
3.3x
6.2x
9.0x
6.9x
5.5x
7.5x
8.5x
5.6x
5.4x
3.0x
4.6x
9.8x
81.5x
7.1x
NM
2.2x
3.8x
3.1x
7.7x
9.4x
6.6x
8.2x
6.9x
NM
4.5x
5.1x
9.4x
4.7x
NM
12.4x
30.4x
NM
9.8x
11.7x
11.2x
So urce: Capital IQ, LCC research
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