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Australian Engineering, Contractors & Service Providers

Edition 211 for the week ending 19 May 2017 | Published 22 May 2017 WWW.LCCAPAC.COM

Market Performance - Overview

P erc en t age c han ge P erc en t age c han ge
Week YTD 12-mon t hs Fi xed In c ome Yi el d Week YTD 12-mon t hs
(Australia) S&P / ASX200 (1.9%) 1.1% 7.6% (Australia) 2-year gov bonds 1.64% (2.4%) (14.3%) (2.3%)
(Japan) Topix (1.3%) 2.7% 16.7% (Australia) 5-year gov bonds 2.05% (4.3%) (12.0%) 9.3%
(Singapore) FTSE Strait Times Index (1.2%) 11.7% 17.4% (Australia) 10-year gov bonds 2.50% (5.5%) (10.0%) 5.4%
(Hong Kong) Hang Seng 0.1% 14.4% 27.8%
(South Korea) Kospi 200 (0.1%) 14.6% 24.7% Rat e Week YTD 12-mon t hs
(US) S&P 500 (0.4%) 6.4% 16.7% AUD to USD 0.7459 1.0% 3.4% 3.2%
(US) Dow Jones Industrial (0.4%) 5.3% 19.3%
(UK) FTSE 100 0.5% 4.6% 23.4%

M&A Rumour and Activity

The Australian market finished the week 1.88% lower with the S&P/ASX200 ending at 5727 points, dragged lower by geopolitical risks, as the
prospects of a US presidential impeachment and the developing political crisis in Brazil following corruption allegations against the countrys
president weighed on the domestic sharemarket. The Australian dollar increased 1.00% for the week to end at US74.59 cents following
broad-based weakness in the US dollar and data showing improvement in Australias labour market (with the unemployment rate ticking down
to 5.7% in April from 5.9% in March).

Downer EDI Ltd (DOW.AX) announced on 22 May 2017 that it is extending its $1.15 takeover offer for shares of Spotless Group Holdings Pty
Ltd (SPO.AX) by 2 weeks to 14 June 2017.

Jack-In Group Limited (JIP.AX) announced on 18 May 2017 that it has entered into a Memorandum of Understanding to acquire an
established specialist drilling and blasting construction company that provides services to both the civil and construction industries in
Australia. Information on the target has not yet been released.

Boart Longyear Limited (BLY.AX) announced on 16 May 2017 that First Pacific Advisors, a holder of BLYs senior secured bonds who had
opposed the Supreme Court of New South Wales order on 10 May 2017 approving BLYs plans to convene meetings of relevant company
creditors to consider two schemes of arrangement implementing key components of the companys recapitalisation, has sought leave to
appeal the order. The leave to appeal does not currently affects BLYs timetable for completing the recapitalisation.

Decmil Group Limited (DCG.AX) announced on 15 May 2017 that it has agreed to dispose of a commercial property located in Herdsman,
Perth, to Primewest Funds Limited (Primewest) for $27.5 million. The transaction is subject to Primewest successfully raising the funds to
complete the purchase and is expected to settle on or before 30 June 2017.

News Headlines and Key Sector Developments

Ticker News/Event
Completed a placement of ordinary shares to institutional investors
raising $5.0 million. AJL is also undertaking a 1 for 2 pro-rata
AJL accelerated, non-renounceable entitlements offer to raise up to $53.7
million at an issue price of $0.275 (12.7% discount to the last closing
price of $0.315 on 17 May 2017)
Announced the removal of its securities from the ASX following the
BKN completion of the compulsory acquisition of all of its issued shares by
Hitachi Construction Machinery Co Ltd
Reported unaudited 1QFY17 results with revenue of US$164 million
BLY (up 15% from pcp) and adjusted NLAT of US$34 million (down 38%
from pcp)
CPB Contractors will deliver the 2nd and final phase of the NZ
CIM Transport Agency project, which will generate revenue of approximately
NZ$82 million to CPB Contractors
Requested an extension for the suspension of its securities from ASX
BYL until Friday 2 June 2017 while it progresses matters relating to
securing additional funding
Announced that it has executed a preparatory works agreement with
MAH Byerwen Coal Pty Ltd (Byerwen) for the Byerwen Coal Mine in
Queenslands Bowen Basin
Source: Thomson Reuters, Company Announcements, LCC research
Ticker News/Event
Awarded a three-year exploration drilling services contract by Glencore
MSV Coal Assets Australia (GCAA) across a number of GCAAs Queensland
coal operations
Announced it has entered into a software license and distribution
agreement with Alford Mining Systems (AMS) to enable RUL to rebrand,
RUL
bundle, market and distribute AMSs Stope Optimisation software
within RULs Underground software solutions to RULs clients
Updated its earnings outlook for FY17 and announced that it expects
SSM
EBITDA for FY17 to be in excess of $46.5 million
Heday5 Pty Ltd has been awarded over $50 million of new contracts
(design and construction of electrical, communication and security
SXE services), which include the ATP Redfern Building 1, NSW the Ribbon
Project, NSW, the Greenland Centre Bathurst St, NSW and the Midnight
Project, ACT
Awarded a five-year Framework Agreement by Shell Global Solutions
WOR International, B.V., for the provision of EPCM services for its
downstream projects worldwide

IMPORTANT DISCLAIMER: This report has been prepared by LCC Asia Pacific Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not
guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to
correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should
not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
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Australian Engineering, Contractors & Service Providers

Edition 211 for the week ending 19 May 2017 | Published 22 May 2017 WWW.LCCAPAC.COM

Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker Company Name Market Cap (A$ m)
(A$) (A$) (A$) (A$) change (%) Trend EBITDA EBIT
Engineering Services
AJL.AX AJ Lucas Group Ltd 118 0.29 0.30 0.30 0.29 3.3% 30.8x n.m.
BOL.AX Boom Logistics Ltd 51 0.12 0.11 0.11 (6.5% ) 11.7x n.m.
BSA.AX BSA Ltd 146 0.33 0.35 0.33 0.30 4.5% 17.7x 98.3x
BYL.AX Brierty Ltd 12 0.10 0.10 0.09 0.09 0.0% n.m. n.m.
CDD.AX Cardno Ltd 638 1.44 1.33 1.39 1.28 (7.0% ) 47.4x n.m.
CIM.AX CIMIC Group Ltd 12,734 40.00 39.50 39.90 38.87 (1.4% ) 12.4x 18.6x
DCG.AX Decmil Group Ltd 155 0.84 0.90 0.85 0.84 3.4% 69.0x n.m.
DOW.AX Downer EDI Ltd 3,770 6.32 6.34 6.42 6.28 (0.5% ) 7.7x 14.2x
EAL.AX E&A Ltd 6 0.05 0.05 0.05 0.05 0.0% n.m. n.m.
EGN.AX Engenco Ltd 59 0.19 0.19 0.20 0.19 (2.6% ) 5.9x 10.8x
GCS.AX Global Construction Services Ltd 114 0.55 0.54 0.55 0.53 (3.6% ) 3.2x 4.4x
GNG.AX GR Engineering Services Ltd 242 1.49 1.58 1.53 1.47 6.0% 8.5x 9.1x
LCM.AX LogiCamms Ltd 26 0.29 0.32 0.32 0.28 14.3% n.m. n.m.
LLC.AX LendLease Group 9,540 16.45 16.35 16.50 16.20 (1.1% ) 12.4x 13.8x
LYL.AX Lycopodium Ltd 118 3.15 2.98 3.10 2.98 (5.4% ) 2.0x 2.1x
MND.AX Monadelphous Group Ltd 1,152 12.53 12.26 12.65 12.26 (2.5% ) 9.2x 11.4x
OTR.AX Onterran Ltd 20 0.32 0.32 0.32 0.32 0.0% n.m. n.m.
RCR.AX RCR Tomlinson Ltd 466 3.37 3.33 3.36 3.27 (1.5% ) 18.7x 73.1x
RDG.AX Resource Development Group Ltd 11 0.02 0.02 0.02 0.02 (10.0% ) (0.1x) (0.2x)
SND.AX Saunders International Ltd 45 0.53 0.53 0.53 0.52 0.0% 11.6x 15.0x
SSM.AX Service Stream Ltd 500 1.27 1.37 1.34 1.26 7.5% 11.0x 13.3x
SWL.AX Seymour Whyte Ltd 104 1.16 1.18 1.18 1.16 0.9% 14.0x 70.3x
SXE.AX Southern Cross Electrical Engineering Ltd 92 0.51 0.58 0.58 0.51 13.9% 14.0x n.m.
STS.AX SRG Ltd 82 1.39 1.28 1.33 1.27 (7.9% ) 4.3x 6.5x
TPP.AX Tempo Australia Ltd 43 0.17 0.18 0.18 0.17 0.0% 2.8x 2.9x
VMG.AX VDM Group Ltd 5 0.00 0.00 0.00 0.00 0.0% n.m. n.m.
VRS.AX Veris Ltd 40 0.13 0.13 0.13 0.12 0.0% 3.6x 8.5x
WOR.AX WorleyParsons Ltd 2,739 10.72 11.09 11.24 10.71 0.8% 10.3x 13.6x
Mining Services
ASL.AX Ausdrill Ltd 415 1.30 1.33 1.32 1.26 0.4% 5.0x 10.4x
ANG.AX Austin Engineering Ltd 93 0.17 0.16 0.16 0.16 0.0% n.m. n.m.
BLY.AX Boart Longyear Ltd 35 0.04 0.04 0.04 0.04 (9.8% ) 32.1x n.m.
BKN.AX Bradken Ltd 676 3.21 3.24 3.21 3.21 0.0% 8.0x 8.0x
DSB.AX Delta SBD Ltd 7 0.15 0.13 0.15 0.13 (10.3% ) 69.2x n.m.
EHL.AX Emeco Holdings Ltd 183 0.08 0.08 0.08 0.08 (7.4% ) 8.0x 163.5x
IMD.AX Imdex Ltd 222 0.61 0.61 0.63 0.59 (0.8% ) 11.4x 27.7x
MAH.AX Macmahon Holdings Ltd 179 0.15 0.15 0.15 0.15 0.0% 5.4x n.m.
MIN.AX Mineral Resources Ltd 1,918 9.35 10.24 9.82 9.26 7.3% 4.3x 6.6x
MLD.AX MACA Ltd 396 1.67 1.69 1.64 1.62 1.2% 4.3x 14.8x
MSV.AX Mitchell Services Ltd 48 0.03 0.03 0.03 0.03 3.1% 20.6x n.m.
MYE.AX Mastermyne Group Ltd 26 0.31 0.28 0.30 0.28 (6.7% ) 26.9x n.m.
NWH.AX NRW Holdings Ltd 185 0.55 0.58 0.58 0.54 4.5% 4.2x 8.2x
RUL.AX RPMGlobal Holdings Ltd 125 0.58 0.59 0.59 0.58 1.7% n.m. n.m.
SWK.AX Swick Mining Services Ltd 55 0.28 0.26 0.28 0.26 (7.1% ) 5.1x n.m.
Marine Services
ASB.AX Austal Ltd 613 1.80 1.77 1.82 1.75 (1.9% ) n.m. n.m.
MBO.AX Mobilarm Ltd 12 0.02 0.03 0.02 0.02 0.0% 62.0x n.m.
MCE.AX Matrix Composites & Engineering Ltd 48 0.53 0.51 0.53 0.51 (3.8% ) n.m. n.m.
MRM.AX MMA Offshore Ltd 80 0.22 0.215 0.22 0.21 (2.3% ) 33.4x n.m.
NMS.AX Neptune Marine Services Ltd 56 0.88 0.91 0.90 0.88 (13.3% ) n.m. n.m.
VEE.AX VEEM Ltd 86 0.665 0.665 0.67 0.67 2.3% 10.1x 12.5x
ZGL.AX Zicom Group Ltd 27 0.13 0.13 0.13 0.13 (7.4% ) n.m. n.m.
Facilities Management
AEI.AX Aeris Environmental Ltd 47 0.30 0.30 0.30 0.28 0.0% n.m. n.m.
GMG.AX Goodman Group Pty Ltd 15,011 8.13 8.39 8.35 8.12 2.7% 53.2x 53.2x
HIL.AX Hills Ltd 44 0.20 0.19 0.20 0.19 (5.0% ) 7.9x 39.0x
MIL.AX Millennium Services Group Ltd 75 1.66 1.65 1.70 1.65 0.0% 11.2x 14.0x
PRG.AX Programmed Maintenance Services Ltd 441 1.75 1.72 1.68 1.65 (3.9% ) 6.9x 10.5x
SKS.AX Stokes Ltd 10 0.33 0.33 0.33 0.33 0.0% 21.6x 28.2x
SPO.AX Spotless Group Holdings Ltd 1,212 1.12 1.11 1.12 1.11 (0.9% ) 7.4x 12.2x
TPS.AX Threat Protect Australia Ltd 18 0.03 0.03 0.03 0.03 0.0% 23.4x 47.6x
UBN.AX Urbanise com Ltd 25 0.07 0.07 0.07 0.07 (12.5% ) n.m. n.m.
So urce: Tho mso n Reuters, LCC research

IMPORTANT DISCLAIMER: This report has been prepared by LCC Asia Pacific Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not
guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to
correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should
not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.