- Civmec (SGX:P9D) posted 1HFY25 net profit of AUD26.5m (-16.9% y-o-y), below our and market expectation at 44%/40% of MIBG/street’s full-year forecast.
Lowering EPS forecast & target price
- - Read this at SGinvestors.io -
- Notwithstanding the lacklustre results, the group retained its interim dividend of 2.5 Australian cents. We thus maintain HOLD for its decent dividend yield of 5.8%.
Lower-than-expected gross margins
- - Read this at SGinvestors.io -
- More worryingly, Civmec’s order book continued to decline by 20.9% q-o-q to AUD633m as at end-Dec 2024 given delays in the timing of key project awards or re-scheduling of timing of projects.
- Nevertheless, management said tendering activities remain at historically high levels, with current priced opportunities nearing AUD12b.
Delays and re-scheduling of new projects
- Read more at SGinvestors.io.
