Civmec - UOB Kay Hian 2023-08-30: Dividend Beats Expectation By 25%; Tendering Activities Remain Strong

• Civmec's FY23 earnings of A$57.7m (+13.7% y-o-y) are slightly above expectations, forming 103% of our full-year estimate. This was driven by higher gross profits across all sectors, leading to a 0.6ppt y-o-y expansion in net margin.
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• Civmec continues to see strong tendering activities across all sectors and we expect its robust orderbook to drive further growth. Maintain BUY with a target price of S$1.23.

FY23 results in line with expectations; revenue growth across most sectors with strong net margin expansion.

• Civmec (SGX:P9D)’s FY23 earnings of A$57.7m (+13.7% y-o-y) are in line, forming 103% of our full-year forecast. Revenue rose 2.7% y-o-y to A$830.9m, mainly due to higher y-o-y contributions from the energy and resources segments of 42.3% and 7.6% respectively, offset by the 26.2% y-o-y fall in revenue from the infrastructure, marine and defence segments (13% of FY23 revenue).
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Positive outlook amid buoyant tendering activities.

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John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-08-30 SGinvestors.io

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