LCC Asia Pacific's weekly market update on the Australian engineering, mining services and infrastructure services sector - including updates on valuations, deal activity and commercial developments

1. ASX200 INDEX
Australia Week Ending
28 May 2021
Date Published
31 May 2021
Edition
405
Australian Engineering, Contractors & METS Providers
Market Performance – Edition 405 – US Infrastructure Led Budget Looking to Australian Commodities
M&A Rumour, Industry News and Private Activity
LCC Australian Contractors Index®
WWW.LCCASIAPACIFIC.COM
WINNER:
BOUTIQUE
INVESTMENT
BANKING FIRM
OF THE YEAR
LCC Asia Pacific Insights | Australian Engineering, Contractors & Services Report Page 1
Sources: Thomson Reuters Eikon, LCC Research, AFR
S&P/ASX200 jumped 2.1% last week reaching a new record high following a 1.2% increase on Friday. Major banks led the gains
with diversified miners closing the week higher as a rise in base metals offset a fall in iron ore prices. Mining and energy stocks rose
sharply on Friday amid speculation that US President Joe Biden is planning an infrastructure friendly A$7.7 trillion budget.
Index
Percentage change
Fixed income Yield
Change in basis point
Week YTD 12-months Week YTD 12-months
(Australia) S&P / ASX200 2.1% 9.0% 22.7% (Australia) 2-year gov bonds 0.07% (0.01) (0.00) (0.20)
(Japan) Topix 2.2% 7.9% 23.5% (Australia) 5-year gov bonds 0.82% (0.01) 0.49 0.42
(Singapore) FTSE Strait Times Index 1.9% 11.8% 26.4% (Australia) 10-year gov bonds 1.63% (0.04) 0.66 0.75
(Hong Kong) Hang Seng 2.3% 7.0% 25.9%
(South Korea) Kospi 200 0.9% 9.4% 58.8% Rate Week YTD 12-months
(US) S&P 500 1.2% 11.9% 38.8% AUD to USD 0.7713 (0.2%) 0.1% 16.2%
(US) Dow Jones Industrial 0.6% 1.3% 6.3%
(UK) FTSE 100 0.1% 8.7% 12.9%
(100%)
0%
100%
200%
300%
400%
500%
600%
700%
800%
2013
2014
2015
2016
2017
2018
2019
2020
2021
LCCASCPI ASX200
The LCC Australian Contractors & Service Providers Index continues to perform strongly against other sectors and the ASX 200
Index and is detailed below left.
LCC Australian
Contractors &
Service Providers
Index®
CIMIC (CIM.AX) announced an off market takeover bid for the remaining shares in Devine
(DVN.AX) for $0.24 per share. CIMIC currently holds 59.11% of Devine share on issue. The
bid represents a 100% premium to DVN’s last close price and a total outlay of ~A$15.6m.
Minority shareholders in DVN have pushed ASIC to investigate how management ran the
company amid allegations that CIMIC was forcing losses to keep share price low and boost
income in core CIM construction businesses.
Engenco (EGN.AX) announced that it executed an agreement to acquire all of the shares of
Eureka 4WD for a consideration of A$4.5m. The acquisition price for Eureka represents a
an FY20 EBITDA multiple of 2.6x and is expected to be EPS accretive for Engenco. EGN
management cited their motivation for the acquisition was to strengthen their existing
registered training organisation and expand Eureka’s services in Western Australia.
Other key pieces of news from the Australian Engineering and Mining sectors:
• ALS (ALQ.AX) have increased their capacity to test samples of commodities by 15% as a
reaction to a substantial increase in mining activity. The company has received an
increase of 19% in copper and gold samples to test.
• MaxMine, a mining data management solution, has sold a quarter of their business to
Viburnum Funds for an undisclosed amount. Viburnum are seeking to expand data
analytics in the Australian mining sector.
• The Department of Industry, Science, Energy and Resources have announced they will
work with Australian METS companies to conduct a Patent Accessibility Review to
improve the IP system in Australia.
• The Western Australian Government has provided A$1.5m for the states METS
companies that are advancing net zero emissions mining projects.
4000
4500
5000
5500
6000
6500
7000
7500
'15 '16 '17 '18 '19 '20 '21

2. Sources: Thomson Reuters Eikon, Company Announcements, LCC research
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.
Not only does this strategy reinforce our fundamental enjoyment and
drive to better service clients within these Sectors, but it allows us to
continually build deep operational and business knowledge of both
broad and niche industries.
This differentiates LCC from other Advisory Firms as we deliver much
more to the Client Leadership Team and Board of Directors than
“commoditised” transactional experience and “general advice”
LCC’s Sector Association Involvement
Page 2
Ticker News/ Event Ticker News/ Event
CIM
CIMIC have announced a Takeover Bid of Devine
Limited for A$0.24 per share
VRS
Veris has appointed David Murray as a Non-Executive
Director
CIM
CIMIC’s contractor UGL selected for M6 Motorway
which will generate revenue of ~A$1.95bn
ALQ
ALS announced results and a distribution of A$0.146 per
share
CVL
Civmec announced strong results and expansion of
Port Hedland Project in WA
BLY
Boart Longyear presented their CEO review of the company’s
activities
EGN
Engenco acquired Eureka 4WD for a total
consideration of A$4.5m
MSV
Presented a 1H21 results overview which triggered a
positive share price reaction of 10.5%
FWD
Fleetwood is undertaking an employee share buy-
back scheme. The consideration to be paid will be
approximately A$1.68m
PPK
Change of directors interest in Li-s Energy. PPK Directors
committed $1.25m off market for their total interest in the
subsidiary
Offshore & Oilfield Oil & Gas Services News – Australia & Abroad
• Civmec limited (CVL.AX) delivered strong Q3 financial results delivering 92.6% revenue improvement over the 2020 Q3 and
bottom line improvement of 121.9%. The company also announced they will establish a permeant Civmec owned and operated
facility in Port Hedland in the Pilbara region.
• ALS (ALQ.AX) delivered their FY21 financial results which included a revenue fall of 5.0% from FY20 due to the impact of the
pandemic. However, ALS highlighted an EBITDA margin expansion across all three divisions demonstrating strong cost
management and a recovery in sample volumes in H2 FY21.
• Boart Longyear presented their CEO review and 2020 results at their AGM. Notable results include a decline in revenue of 11%
compared with the previous year and a high Net Debt/EBITDA ratio of 10.4x
Mining, Equipment, Technology & Services Sector (METS) Updates
• Australian energy major Woodside announced plans to bring 50MW of solar energy to Pluto LNG facility for Western Australia’s
Burrup Peninsula green energy push. The proposed project would comprise of more than 210,000 solar panels, making it the
largest solar project in Western Australia.
• Engineering and maintenance services specialist Sparrows Group has secured a contract with Chevron for work on the Gorgon
and Wheatstone natural gas facilities in Australia. Sparrows will conduct inspection and maintenance services for cranes and
lifting equipment.
• Australian mineral exploration company WA Kaolin has signed a 15-year contract for the supply of LNG for it Wickepin Kaolin
project. The contract is valued at circa A$22m over the full period.

3. LCC Australian Contractors & Service Providers Index®
(LCCACSPI)
WWW.LCCASIAPACIFIC.COM
The LCCACSPI Index is starting to show that “V”
shape recovery, with the iron ore price actually
driving value past pre-covid levels.
Market Data Since 2011 Rolling 1 Year Market Data
Market Data Since 2011 Rolling 1 Year Market Data
LCC index is continuing to strongly outperform vs
the ASX200, despite the continued uncertainty over
the economic environment.
All sectors changing track onto a positive path
again, with risks of second wave and stagnant
growth seemingly decreasing.
Mining Services continues to outperform many
other sectors, the industry seemingly weathering
the second wave of global virus outbreaks, and
negative global economic sentiment.
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
(10%)
0%
10%
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90%
100%
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
LCCASCPI ASX200
(100%)
0%
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600%
700%
800%
LCCASCPI ASX200
(50%)
0%
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May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
LCCASCPI Engineering Services
Mining Services Others
(200%)
0%
200%
400%
600%
800%
1,000%
LCCACSPI 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 80 0.36 0.36 0.37 0.36 — 0.0% 6.5x 13.8x
AJL.AX AJ Lucas Group Ltd 32 0.03 0.03 0.03 0.03 ▼ (3.6%) 5.1x 7.0x
BOL.AX Boom Logistics Ltd 60 0.15 0.14 0.14 0.14 ▼ (3.4%) 2.9x n.m.
BPP.AX Babylon Pump & Power Ltd 26 0.02 0.02 0.02 0.02 ▲ 4.5% n.m. n.m.
BSA.AX BSA Ltd 139 0.32 0.32 0.33 0.31 — 0.0% 13.9x n.m.
CDD.AX Cardno Ltd 269 0.75 0.69 0.72 0.67 ▼ (9.8%) 5.3x 11.5x
CIM.AX CIMIC Group Ltd 6,654 21.49 21.30 21.08 20.66 ▼ (0.9%) n.m. n.m.
CVL.AX Civmec Ltd 290 0.56 0.59 0.57 0.53 ▲ 11.3% 6.8x 8.9x
DCG.AX Decmil Group Ltd 67 0.52 0.52 0.52 0.52 — 0.0% 2.2x 2.7x
DOW.AX Downer EDI Ltd 3,997 5.44 5.68 5.60 5.43 ▲ 5.2% 6.5x 15.5x
EGN.AX Engenco Ltd 173 0.55 0.55 0.55 0.55 ▲ 3.8% 10.1x 17.5x
FWD.AX Fleetwood Ltd 233 2.33 2.45 2.35 2.30 ▲ 5.2% 5.1x 11.3x
GNG.AX GR Engineering Services Ltd 214 1.25 1.33 1.23 1.12 ▲ 6.4% 8.7x 10.2x
JLG.AX Johns Lyng Group Ltd 967 4.39 4.30 4.40 4.22 — 0.0% 19.5x 23.9x
LLC.AX LendLease Group 8,541 12.13 12.36 12.20 11.94 ▲ 2.8% n.m. n.m.
LYL.AX Lycopodium Ltd 219 5.46 5.49 5.48 5.33 ▲ 0.5% 4.9x 6.3x
MCE.AX Matrix Composites & Engineering Ltd 15 0.14 0.15 0.14 0.13 ▲ 16.0% n.m. n.m.
MND.AX Monadelphous Group Ltd 966 10.01 10.16 10.12 9.84 ▲ 1.1% 12.5x 22.5x
PGX.AX Primero Group Ltd 100 0.54 0.55 0.54 0.54 — 0.0% n.m. n.m.
RDG.AX Resource Development Group Ltd 130 0.05 0.05 0.05 0.05 ▼ (8.0%) 55.1x n.m.
SND.AX Saunders International Ltd 78 0.75 0.76 0.76 0.75 ▲ 0.7% 10.5x 14.6x
SRG.AX SRG Global Ltd 233 0.47 0.52 0.50 0.47 ▲ 11.8% 12.4x n.m.
SSM.AX Service Stream Ltd 404 0.89 0.98 0.90 0.83 ▲ 8.3% 4.8x 7.2x
SXE.AX Southern Cross Electrical Engineering Ltd 129 0.52 0.52 0.52 0.51 ▲ 1.0% 4.3x 5.8x
SOP.AX SML Corporation Ltd 23 0.08 0.08 0.08 0.08 ▲ 8.1% n.m. n.m.
TPP.AX Tempo Australia Ltd 29 0.07 0.08 0.08 0.07 ▲ 1.3% 19.0x 181.3x
VMG.AX VDM Group Ltd 17 0.00 0.00 0.00 0.00 ▲ 25.0% n.m. n.m.
VMX.AX Valmec Ltd 43 0.35 0.34 0.35 0.34 — 0.0% 7.8x 17.2x
VRS.AX Veris Ltd 38 0.08 0.07 0.08 0.07 ▼ (5.2%) 22.0x n.m.
WOR.AX Worley Ltd 5,553 11.24 10.60 10.75 10.34 ▼ (4.6%) 8.4x 13.9x
ZGL.AX Zicom Group Ltd 15 0.07 0.07 0.07 0.06 ▼ (1.4%) 2.4x 5.2x
Mining Services
AMX.AX Aerometrex Ltd 85 0.90 0.90 0.90 0.86 ▲ 1.1% 36.3x n.m.
ANG.AX Austin Engineering Ltd 79 0.14 0.14 0.14 0.13 ▲ 8.0% 4.5x 6.7x
BLY.AX Boart Longyear Ltd 34 0.41 0.38 0.40 0.36 ▼ (6.2%) 14.3x 42.7x
EHL.AX Emeco Holdings Ltd 494 0.88 0.91 0.90 0.86 ▲ 2.3% 3.0x 6.0x
IMD.AX Imdex Ltd 831 1.93 2.09 2.02 1.88 ▲ 8.3% 14.0x 29.6x
IPL.AX Incitec Pivot Ltd 4,502 2.38 2.31 2.33 2.23 ▼ (2.1%) 10.6x 26.6x
MAH.AX Macmahon Holdings Ltd 422 0.19 0.20 0.19 0.19 ▲ 5.4% 2.3x 6.3x
MIN.AX Mineral Resources Ltd 8,693 43.01 45.90 44.99 42.62 ▲ 6.6% 7.3x 8.8x
MLD.AX MACA Ltd 276 0.85 0.81 0.82 0.79 ▼ (3.6%) 3.6x 16.2x
MSV.AX Mitchell Services Ltd 84 0.38 0.42 0.41 0.38 ▲ 10.5% 3.8x n.m.
MYE.AX Mastermyne Group Ltd 83 0.74 0.78 0.76 0.69 ▲ 7.6% 2.9x 5.6x
NWH.AX NRW Holdings Ltd 779 1.70 1.70 1.70 1.65 ▲ 0.9% 3.5x 8.7x
ORI.AX Orica Ltd 5,615 13.64 13.75 13.54 13.15 ▲ 1.8% 10.0x 20.4x
PPK.AX PPK Group Ltd 1,340 12.44 14.99 14.51 12.00 ▲ 21.4% n.m. n.m.
PRN.AX Perenti Global Ltd 470 0.67 0.67 0.66 0.64 — 0.0% 3.3x 29.1x
RUL.AX RPMGlobal Holdings Ltd 341 1.49 1.49 1.48 1.42 ▲ 0.3% 45.5x n.m.
SWK.AX Swick Mining Services Ltd 49 0.16 0.18 0.18 0.16 ▲ 6.1% 3.4x 67.5x
Facilities Management & Services
AEI.AX Aeris Environmental Ltd 39 0.17 0.16 0.17 0.14 ▼ (3.0%) 19.0x 21.8x
ALQ.AX ALS Ltd 5,863 11.04 12.11 12.03 10.76 ▲ 11.3% 17.0x 25.6x
HIL.AX Hills Ltd 31 0.14 0.14 0.14 0.14 ▼ (3.6%) 9.0x n.m.
MIL.AX Millennium Services Group Ltd 29 0.63 0.62 0.63 0.62 ▼ (1.6%) n.m. n.m.
ENE.AX SKS Technologies Group Ltd 26 0.25 0.24 0.25 0.24 ▼ (2.0%) 8.8x 13.0x
TPS.AX Threat Protect Australia Ltd 6 0.03 0.03 0.03 0.02 — 0.0% 10.8x n.m.
Weekly
change (%)

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