Civmec - UOB Kay Hian 2024-02-15: 1HFY24 Positive Dividend Surprise & Robust Net Cash Position

• Civmec proposed a 25% higher interim dividend of A$0.025 for 1HFY24, driven by strong operating cash flow of A$111.2m (+32% y-o-y). Its net cash position surged to A$83m (+549% y-o-y). See Civmec's dividend dates.
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1HFY24 Resultsin line; robust earnings growth for 1HFY24 and stable margins.

• Civmec (SGX:P9D)’s 1HFY24 net profit of A$31.9m (+12.8% y-o-y) is in line with our expectations, making up 51% of our full-year forecast. The substantial 17.5% y-o-y rise in revenue is mainly due to the resources segment’s revenue growing to A$418.9m (+21.5% y-o-y) and the energy segment’s revenue growing to A$20.4m (+18.0% y-o-y).
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Higher-than-expected dividend on stronger operating cash flows and net cash growing 549% y-o-y to A$83m.

• Civmec proposed a 25% higher 1HFY24 interim dividend of A$0.025 (1HFY23: A$0.02), driven by its solid operating cash flow of A$111.2m (+32.2% y-o-y) during the period. Civmec’s net cash position surged to A$83.1m (+549.2% y-o-y, +89.2% q-o-q), equivalent to around 20% of its market cap.
• It is worth noting that Civmec recorded operating cash flow of A$67.3m in 2QFY24 alone, a 53.3% q-o-q improvement from 1QFY24.

Solid orderbook maintained with more contract wins.

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John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-02-15 SGinvestors.io

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