$Civmec (P9D.SG)$ 📢 Company Update: Civmec Limited (CVL SP)...

$Civmec(P9D.SG)$
📢 Company Update: Civmec Limited (CVL SP), 8 September 2021
Strong fundamentals spearheading growth

🔷 Earnings beat. Civmec’s FY2021 net profit (YE 30 June 2021) surged 97% YoY to A$34.6mn, beating our estimates of A$33.5mn.

🔷 China’s iron ore appetite. Even though iron ore prices have been on a downtrend recently as Chinese policymakers attempt to cut steel production, China’s iron ore imports hit new highs in August, suggesting the country’s continued reliance on the commodity.

🔷 Mid and long-term drivers. Likelihood of increased contract wins as the Australian government ramps up on defence and infrastructure spending. Overall revenue supported by approximately 20% recurring income from maintenance and upgrading works. Buoyant commodity market to drive capex spending for miners.

We maintain an OUTPERFORM recommendation and revise our TP to S$0.90, based on an unchanged 12.0x FY2022F P/E.

➡️ Read More:
https://www.kgieworld.sg/research/civmec-limited/