LCC Asia Pacific EMSC Weekly_201705051_Edition209
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The document presents the market performance report for the week ending May 5, 2017, highlighting a 1.48% decline in the Australian S&P/ASX200 index and a decrease in the Australian dollar due to falling commodity prices. It also covers mergers and acquisitions activities, including Downer EDI's final offer for Spotless Group and Allegro's acquisition of a majority stake in Terrex Seismic. The report concludes with key sector developments and company performances in various industries.
LCC Asia Pacific EMSC Weekly_201705051_Edition209
- 1. Page 1 / 2 Australian Engineering, Contractors & Service Providers Edition 209 for the week ending 5 May 2017 | Published 8 May 2017 WWW.LCCAPAC.COM IMPORTANT DISCLAIMER: This report has been prepared by LCC Asia Pacific 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. Market Performance - Overview Percentage change Percentage change Index Week YTD 12 months Fixed Income Yield Week YTD 12 months (Australia) S&P / ASX200 (1.5%) 3.0% 10.6% (Australia) 2-year gov bonds 1.73% 3.5% (9.7%) 1.9% (Japan) Topix 1.2% 2.1% 19.3% (Australia) 5-year gov bonds 2.20% 3.1% (5.8%) 15.0% (Singapore) FTSE Strait Times Index 1.7% 12.1% 16.7% (Australia) 10-year gov bonds 2.66% 2.7% (4.0%) 11.4% (Hong Kong) Hang Seng (0.6%) 11.3% 19.7% (South Korea) Kospi 200 1.8% 12.5% 20.2% Currency Rate Week YTD 12 months (US) S&P 500 0.6% 7.2% 17.0% AUD to USD 0.7418 (0.9%) 2.8% (0.6%) (US) Dow Jones Industrial 0.3% 6.3% 18.9% (UK) FTSE 100 1.3% 2.2% 19.3% M&A Rumour and Activity The Australian market finished the week 1.48% lower with the S&P/ASX200 ending at 5837 points, following sharp falls in commodity prices on growing fears of a supply glut. The Australian dollar decreased 0.88% for the week to end at US74.18 cents, as prices of copper and iron ore tumbled lower and the US dollar strengthened on hawkish comments from the US Federal Reserve. Downer EDI Ltd (DOW.AX) announced on 3 May 2017 that its $1.15 per share takeover offer for shares of Spotless Group Holdings Ltd (SPO.AX) represents the final offer price in the absence of a superior proposal. DOW had also submitted to the Takeovers Panel (among other things) that SPO’s target statement contains a number of information deficiencies. The Australian Financial Review reported on 2 May 2017 that private equity firm Allegro has acquired a majority stake in Terrex Seismic, a provider of seismic and surveying services to the mining and oil & gas industries, for an undisclosed value. The Australian reported that CHAMP Private Equity is understood to be looking to acquire Spotless Group Holding Ltd (SPO.AX)’s laundries operations days before SPO received a $1.3 billion takeover bid from Downer EDI Ltd (DOW.AX). The AFR reported on 4 May 2017 that Macmahon Holdings Ltd (MAH.AX) is expected to sign a deal that that will see MAH working together on PT Amman Mineral Nusa Tenggara (“AMNT”)’s Batu Hijau copper-gold mine in Indonesia, leaving AMNT with a 40% to 50.1% stake in MAH. The AFR reported on 2 May 2017 that First Pacific Advisers, one of Boart Longyear Ltd (BLY.AX)’s key creditor holding 25% of BLY’s secured US bonds, plans to block BLY’s recapitalisation plan if it doesn’t get a better deal under the scheme. Range Resources Ltd (RRS.AX) said on 1 May 2017 that it has signed an agreement to acquire 100% of Range Resources Drilling Services Ltd, an oilfield services business based in Trinidad with a fleet of 12 rigs from LandOcean Energy Services Co. Ltd for US$5.5 million. The transaction would constitute a reserves takeover and is subject to a vote by the company’s shareholders and regulatory approvals. Also during the week, LCC Asia Pacific has been selected as a finalist in multiple deal categories, including “Asia Deal Of The Year” and also as a finalist for “Boutique Investment Banking Firm Of The Year” at the 9th Annual International M & A Awards in New York in June. News Headlines and Key Sector Developments Ticker News/Event Ticker News/Event BLY The first court hearing in relation to its recapitalisation proposal commenced on 4 May 2016 and has not concluded MAH Securities placed on a trading halt pending the announcement of a proposed transaction with PT Amman Nusa Tenggara CIM Sedgman has been awarded an 18-month $107 million contract by Heron Resources Ltd to deliver the Woodlawn zinc-copper processing facility and associated infrastructure MLD Awarded a $6m mining contract by Northern Minerals Ltd for the Browns Range Pilot Plant in northern Western Australia (mining of 180,000 tonnes of ore and associated waste) CIM Leighton Asia has been selected by the Government of Hong Kong to construct the East Kowloon Cultural Centre, which will generate an estimated revenue to Leighton Asia of c.$436m RCR Secured a contract with APA Group for a Qld Solar Farm DOW Awarded an EPC and O&M contract valued at $200m by Palisade Investments & ESCO Pacific for the 148MW Ross River Solar Farm RCR Awarded two contracts, totalling c.$50m, with Canadian Solar to design and construct the 15MW Longreach Solar Farm and the 1st phase of the 25MW Oakey Solar Farm MYE Entered into a contract with Peabody which include Project Management and supply of labour and equipment and a number of other contract & contract extensions (Anglo, Rio, South 32) WTP Appointed Managing Contractor for the $250m North Queensland Stadium Source: Thomson Reuters, Company Announcements, LCC research
- 2. Page 2 / 2 Australian Engineering, Contractors & Service Providers Edition 209 for the week ending 5 May 2017 | Published 8 May 2017 WWW.LCCAPAC.COM IMPORTANT DISCLAIMER: This report has been prepared by LCC Asia Pacific Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made. Ticker Company Name Market Cap (A$ m) Open Price (A$) Close Price (A$) Week High (A$) Week Low (A$) Volume Trend EV/ EBITDA EV/ EBIT Engineering Services AJL.AX AJ Lucas Group Ltd 101 0.25 0.26 0.26 0.23 ▲ 4.0% 28.5x n.m. BOL.AX Boom Logistics Ltd 52 0.12 0.11 0.12 0.11 ▼ (8.3%) 11.8x n.m. BSA.AX BSA Ltd 150 0.35 0.36 0.35 0.35 ▲ 1.4% 18.4x 101.8x BYL.AX Brierty Ltd 12 0.10 0.10 0.09 0.09 — 0.0% n.m. n.m. CDD.AX Cardno Ltd 655 1.33 1.37 1.32 1.30 ▲ 2.6% 48.7x n.m. CIM.AX CIMIC Group Ltd 12,122 37.00 37.44 37.68 36.63 ▲ 1.1% 11.8x 17.7x DCG.AX Decmil Group Ltd 138 0.79 0.81 0.79 0.75 ▲ 2.5% 61.2x n.m. DOW.AX Downer EDI Ltd 3,527 5.88 5.93 5.82 5.77 ▲ 0.9% 7.2x 13.3x EAL.AX E&A Ltd 6 0.05 0.05 0.05 0.05 ▼ (14.8%) n.m. n.m. EGN.AX Engenco Ltd 59 0.185 0.19 0.19 0.19 ▲ 5.6% 5.9x 10.8x GCS.AX Global Construction Services Ltd 114 0.57 0.57 0.57 0.55 — 0.0% 3.2x 4.4x GNG.AX GR Engineering Services Ltd 210 1.48 1.38 1.49 1.34 ▼ (8.0%) 7.2x 7.7x LCM.AX LogiCamms Ltd 26 0.34 0.32 0.33 0.31 ▼ (5.9%) n.m. n.m. LLC.AX LendLease Group 9,621 16.16 16.49 16.56 16.03 ▲ 2.9% 12.5x 14.0x LYL.AX Lycopodium Ltd 121 3.20 3.05 3.20 3.05 ▼ (5.3%) 2.1x 2.2x MND.AX Monadelphous Group Ltd 1,148 12.50 12.22 12.73 12.20 ▼ (2.2%) 9.2x 11.4x OTR.AX Onterran Ltd 20 0.32 0.32 0.32 0.32 — 0.0% n.m. n.m. RCR.AX RCR Tomlinson Ltd 455 2.84 3.25 3.21 2.84 ▲ 14.4% 18.3x 71.6x RDG.AX Resource Development Group L 12 0.02 0.02 0.02 0.02 — 0.0% (0.1x) (0.1x) SND.AX Saunders International Ltd 45 0.54 0.53 0.54 0.53 ▼ (4.5%) 11.6x 15.0x SSM.AX Service Stream Ltd 444 1.18 1.22 1.22 1.15 ▲ 4.7% 9.7x 11.6x SWL.AX Seymour Whyte Ltd 99 1.20 1.12 1.16 1.08 ▼ (8.2%) 13.1x 65.5x SXE.AX Southern Cross Electrical Engine 72 0.48 0.45 0.48 0.44 ▼ (8.2%) 9.6x n.m. STS.AX SRG Ltd 84 1.38 1.32 1.37 1.32 ▼ (4.4%) 4.4x 6.7x TPP.AX Tempo Australia Ltd 43 0.18 0.18 0.18 0.17 — 0.0% 2.8x 2.9x VMG.AX VDM Group Ltd 5 0.00 0.00 0.00 0.00 — 0.0% n.m. n.m. VRS.AX Veris Ltd 41 0.14 0.13 0.14 0.12 ▼ (10.7%) 3.6x 8.5x WOR.AX WorleyParsons Ltd 2,628 11.29 10.64 11.12 10.57 ▼ (6.0%) 10.0x 13.2x Mining Services ASL.AX Ausdrill Ltd 431 1.35 1.38 1.35 1.34 ▲ 1.1% 5.1x 10.7x ANG.AX Austin Engineering Ltd 98 0.17 0.17 0.17 0.16 ▲ 6.3% n.m. n.m. BLY.AX Boart Longyear Ltd 39 0.04 0.04 0.04 0.04 ▼ (6.8%) 32.2x n.m. BKN.AX Bradken Ltd 675 3.21 3.24 3.21 3.21 — 0.0% 8.0x 8.0x DSB.AX Delta SBD Ltd 8 0.15 0.15 0.15 0.15 — 0.0% 74.2x n.m. EHL.AX Emeco Holdings Ltd 197 0.09 0.08 0.09 0.08 ▼ (4.7%) 8.3x 168.0x IMD.AX Imdex Ltd 220 0.62 0.60 0.60 0.59 ▼ (3.2%) 11.3x 27.4x MAH.AX Macmahon Holdings Ltd 186 0.16 0.16 0.16 0.15 — 0.0% 5.7x n.m. MIN.AX Mineral Resources Ltd 1,737 10.69 9.27 10.47 9.23 ▼ (13.3%) 3.9x 5.9x MLD.AX MACA Ltd 396 1.67 1.69 1.68 1.66 ▲ 1.8% 4.3x 14.8x MSV.AX Mitchell Services Ltd 46 0.03 0.03 0.03 0.03 ▼ (6.1%) 19.6x n.m. MYE.AX Mastermyne Group Ltd 30 0.28 0.33 0.34 0.28 ▲ 17.9% 30.2x n.m. NWH.AX NRW Holdings Ltd 169 0.56 0.53 0.54 0.50 ▼ (6.3%) 3.9x 7.6x RUL.AX RPMGlobal Holdings Ltd 123 NULL 0.58 0.59 0.58 ▼ (3.3%) n.m. n.m. SWK.AX Swick Mining Services Ltd 61 0.29 0.29 0.29 0.28 ▲ 1.8% 5.6x n.m. Marine Services ASB.AX Austal Ltd 614 1.75 1.76 1.73 1.71 ▲ 2.6% n.m. n.m. MBO.AX Mobilarm Ltd 12 0.02 0.03 0.02 0.02 — 0.0% 62.0x n.m. MCE.AX Matrix Composites & Engineerin 50 0.53 0.53 0.53 0.53 ▼ (1.9%) n.m. n.m. MRM.AX MMA Offshore Ltd 81 0.22 0.2175 0.22 0.22 ▼ (1.1%) 33.5x n.m. NMS.AX Neptune Marine Services Ltd 64 1.05 1.05 1.05 1.05 — 0.0% 111.4x n.m. VEE.AX VEEM Ltd 87 0.67 0.67 0.67 0.67 — 0.0% 10.2x 12.6x ZGL.AX Zicom Group Ltd 26 0.14 0.12 0.14 0.12 ▼ (14.3%) n.m. n.m. Facilities Management AEI.AX Aeris Environmental Ltd 47 0.32 0.30 0.32 0.30 ▼ (16.7%) n.m. n.m. GMG.AX Goodman Group Pty Ltd 14,724 8.07 8.23 8.27 8.07 ▲ 1.5% 52.2x 52.2x HIL.AX Hills Ltd 46 0.19 0.20 0.20 0.19 ▲ 2.6% 8.2x 40.4x MIL.AX Millennium Services Group Ltd 74 1.68 1.62 1.66 1.62 ▼ (3.3%) 11.0x 13.8x PRG.AX Programmed Maintenance Serv 455 1.72 1.77 1.75 1.72 ▲ 2.9% 7.0x 10.7x SKS.AX Stokes Ltd 10 0.33 0.33 0.33 0.33 — 0.0% 21.6x 28.2x SPO.AX Spotless Group Holdings Ltd 1,206 1.08 1.10 1.09 1.06 ▲ 1.9% 7.3x 12.1x TPS.AX Threat Protect Australia Ltd 20 0.03 0.03 0.03 0.03 — 0.0% 26.0x 52.8x UBN.AX Urbanise com Ltd 29 0.09 0.08 0.08 0.08 ▼ (4.7%) n.m. n.m. Source: Thomson Reuters, LCC research Weekly change (%)