Undervalued heavy engineering company from Down Under

SINGAPORE (Jan 19): KGI Securities Research is positive on the mid-long term outlook for Civmec as it expects growth to be supported by its good track record in Australia and a healthy balance sheet.

Quarter on quarter, Civmec’s share price has increased 80% but KGI still see potential for its valuations to re-rate upwards on increased order wins and improved bottom line performance in the next few quarters.

In an unrated report out today, analyst Joel Ng its latest quarterly revenue and profits are the highest in the last four quarters, which shows its diversification strategy is working. It recently won two contracts worth A$160 million ($171 million) and Ng is positive of the order momentum to continue.

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