Civmec - UOB Kay Hian 2024-05-28: 3QFY24 Results In Line With Expectations; Record-Breaking Quarter

• Civmec’s record-high 3QFY24 earnings of A$17m (+17% y-o-y) is in line with our expectation, with 9MFY24 forming 78% of our full-year estimate. Its orderbook remains robust with strong tendering activity across all sectors, while its new Port Hedland facility and upcoming Gladstone facility expansion are expected to drive growth.
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3QFY24 results in line; earnings up 17% y-o-y to hit record high.

• Civmec (SGX:P9D)’s 3QFY24 net profit of A$17m (+17% y-o-y) is in line with our expectations, resulting in 9MFY24 accounting for 78% of our full-year forecast. 3QFY24 revenue soared 37.6% y-o-y to A$258m, but net margin contracted by 1.2ppt y-o-y to 6.6%.
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Robust orderbook with new contracts awarded.

• Civmec still sees a strong pipeline of tendering opportunities in all the sectors it operates in (resources, energy and infrastructure, marine and defence).
• Orderbook stands at A$821m, with Civmec continuing to expand both its service offerings and client base. This secures most of its revenue for the next 12 months, with a portion extending up to 2029.
• Civmec continues to have early contractor involvement with its existing and new clients by leveraging on its established track record and strategic locations, and expects to keep replenishing its orderbook.

New maintenance facilities to unlock opportunities and spur growth.

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John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-05-28 SGinvestors.io

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