Three Industrial Stocks to Watch– DOW, CIM, NWH

  • Dec 27, 2019 AEDT
  • Team Kalkine
Three Industrial Stocks to Watch– DOW, CIM, NWH

The industrial sector comprises of the companies that manufacture and sell machinery, equipment and supplies that are primarily used to manufacture goods, which are generally sold to consumers.

The industrial sector is divided into two parts: heavy industry and light industry. Generally, this sector renovates raw materials into finished products.

Some examples of industrial sector divisions are:

· Chemical industry

· Consumer electronics

· Industrial equipment

· Automobile industry

· Steel production

· Tobacco industry

Let’s look at the three industrial stocks and their recent updates.

Downer EDI Limited (ASX:DOW)

Downer EDI Limited is one of the top providers of integrated services in New Zealand and Australia. The company’s primary objective is to maintain and build the current environment and its pledge is to work diligently with its customers to help them thrive, utilising world-leading visions.

Downer notified JV to provide services for Sydney Water

Downer EDI Limited notified a joint venture (JV), Confluence Water as 1 of the 3 consortia to provide services as per Sydney Water’s Partnering for Success program.

· Confluence Water, the joint venture, will be responsible for the maintenance and upgrade of existing assets in the region;

· It will also deliver maintenance, construction, design and facilities management services in Sydney Water’s North region.

Downer Awarded with Logan Water Infrastructure Program Alliance Contract of $520 million

The company has been awarded a five-year contract of $520 million to plan, design and deliver water and wastewater infrastructure for Logan City Council (LCC). The contract has the provisions for two extensions of two years and will start on January 2020. The nine-year term would be valued up to $1 billion in total. The company will partner with LLC to deliver planning, design, delivery and program management services for water, sewerage and treatment assets in the region. This contract will improve its position as a market leader in providing complete water lifecycle solutions.

Stock Performance

The stock of DOW was trading at $8.27 per share on 27th December 2019, up by 0.854% (at AEDT 12:54 PM). The company has a market capitalisation of $4.88 million as on 27th December 2019 with an annual dividend yield of 3.41%. Its 52-week low and high is $6.200 and $8.500, respectively. The stock has given a total return of 3.40% and 17.99% in the time period of 3 months and 6 months, respectively.

CIMIC Group (ASX: CIM)

CIMIC Group is involved in the business of construction, mining and minerals processing, public-private partnerships, engineering etc. CIM includes of CPB Contractors, consisting of Leighton Asia and Broad, Thiess and Sedgman, along with UGL along with its Pacific Partnerships.

Solid Financial Performance (Source: Company’s Report)

CIMIC’s CPB Contractors Gets RIO or Rio Tinto’s 3 Contracts

CPB Contractors, a CIMIC Group Limited company, has been selected by Rio Tinto to deliver three separate packages of work at Robe Valley, in Pilbara, WA.

· The company has a solid track record of delivering significant projects to the iron ore industry;

· The project’s worth is approximately $150 million, which includes earthworks and civil works linked with the development of Robe Valley;

· The project is expected to be completed by the end of 2021.

CIMIC’s CPB Contractors receives $423 million Contract for Metronet

The company has reached contractual close to deliver the Thornlie to Cockburn Link and Yanchep Rail Extension and components of Perth’s METRONET.

· The alliance-style contract, in partnership with the company, will generate revenue of approximately $423 million to CPB Contractors;

· The project is funded by the Australian and Western Australian governments;

· CPB Contractors has a strong and experienced team in Western Australia, which will ensure the safe and efficient delivery of the METRONET program.

CIMIC Announces Further Market Share Buyback

CIMIC Group has announced a further on-market share buyback of up to 10% of CIMIC’s fully paid ordinary shares. The company’s current on-market share buy-back will end on 28 December 2019.

· The new share buyback will be funded by a combination of working capital facilities and cash balances;

· The number of shares purchased, and timing will depend on the company’s share price and market conditions;

· The new share buyback is aimed to enhance shareholders return and capital efficiency.

Stock Performance

The stock of CIM was at $33.71 per share on 27th December 2019, up by 0.238% (at AEDT 12:58 PM). The company has a market capitalisation of $10.89 billion as on 27th December 2019 with an annual dividend yield of 4.67%. Its 52-week low and high is $28.880 and $51.500, respectively. The stock has given a total return of 5.89% and -25.47% in the time period of 3 months and 6 months, respectively.

NRW Holdings Limited (ASX: NWH)

NRW Holdings Limited is a diversified and leading provider of contract services to the infrastructure and resources sectors in Australia with major operations in South Australia, New South Wales, Western Australia, Victoria and Queensland.

NRW Grabs an Infrastructure Contract with Fortescue Metal Group

NRW Holdings Limited has announced that BGC contracting has been awarded an infrastructure contract with Fortescue Metal Group at its Eliwana Mine and Rail project located in the Pilbara region of WA.

· The total worth of the contract is $138 million and will support the development of 143km of rail for the Eliwana project;

· The project is scheduled to be completed by late 2020.

NRW to Acquire BHC Contracting

Contract services provider, NRW Holdings Limited has confirmed the acquisition of BGC Contracting for an equity value of $116.4 million.

· BGC Contracting provides services to the resources, energy and infrastructure sectors;

· It consists of existing contract portfolio and order book of about $1.5 billion;

· The company now has good visibility on FY20 earnings and expects to generate revenue of ~$850 million, EBITDA of ~$100 million and PBT of ~$29.5 million.

Stock Performance

The stock of NWH was trading at $3.240 per share on 27th December 2019, up by 0.31% (at AEDT 1:00 PM). The company has a market capitalisation of $1.37 billion as on 27th December 2019 with an annual dividend yield of 1.24%. Its 52-week low and high is $1.400 and $3.340, respectively. The stock has given a total return of 28.69% and 42.92% in the time period of 3 months and 6 months, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

· Chemical industry

· Consumer electronics

· Industrial equipment

· Automobile industry

· Steel production

· Tobacco industry

Let’s look at the three industrial stocks and their recent updates.

Downer EDI Limited (ASX:DOW)

Downer EDI Limited is one of the top providers of integrated services in New Zealand and Australia. The company’s primary objective is to maintain and build the current environment and its pledge is to work diligently with its customers to help them thrive, utilising world-leading visions.

Downer notified JV to provide services for Sydney Water

Downer EDI Limited notified a joint venture (JV), Confluence Water as 1 of the 3 consortia to provide services as per Sydney Water’s Partnering for Success program.

· Confluence Water, the joint venture, will be responsible for the maintenance and upgrade of existing assets in the region;

· It will also deliver maintenance, construction, design and facilities management services in Sydney Water’s North region.

Downer Awarded with Logan Water Infrastructure Program Alliance Contract of $520 million

The company has been awarded a five-year contract of $520 million to plan, design and deliver water and wastewater infrastructure for Logan City Council (LCC). The contract has the provisions for two extensions of two years and will start on January 2020. The nine-year term would be valued up to $1 billion in total. The company will partner with LLC to deliver planning, design, delivery and program management services for water, sewerage and treatment assets in the region. This contract will improve its position as a market leader in providing complete water lifecycle solutions.

Stock Performance

The stock of DOW was trading at $8.27 per share on 27th December 2019, up by 0.854% (at AEDT 12:54 PM). The company has a market capitalisation of $4.88 million as on 27th December 2019 with an annual dividend yield of 3.41%. Its 52-week low and high is $6.200 and $8.500, respectively. The stock has given a total return of 3.40% and 17.99% in the time period of 3 months and 6 months, respectively.

CIMIC Group (ASX: CIM)

CIMIC Group is involved in the business of construction, mining and minerals processing, public-private partnerships, engineering etc. CIM includes of CPB Contractors, consisting of Leighton Asia and Broad, Thiess and Sedgman, along with UGL along with its Pacific Partnerships.

Solid Financial Performance (Source: Company’s Report)

CIMIC’s CPB Contractors Gets RIO or Rio Tinto’s 3 Contracts

CPB Contractors, a CIMIC Group Limited company, has been selected by Rio Tinto to deliver three separate packages of work at Robe Valley, in Pilbara, WA.

· The company has a solid track record of delivering significant projects to the iron ore industry;

· The project’s worth is approximately $150 million, which includes earthworks and civil works linked with the development of Robe Valley;

· The project is expected to be completed by the end of 2021.

CIMIC’s CPB Contractors receives $423 million Contract for Metronet

The company has reached contractual close to deliver the Thornlie to Cockburn Link and Yanchep Rail Extension and components of Perth’s METRONET.

· The alliance-style contract, in partnership with the company, will generate revenue of approximately $423 million to CPB Contractors;

· The project is funded by the Australian and Western Australian governments;

· CPB Contractors has a strong and experienced team in Western Australia, which will ensure the safe and efficient delivery of the METRONET program.

CIMIC Announces Further Market Share Buyback

CIMIC Group has announced a further on-market share buyback of up to 10% of CIMIC’s fully paid ordinary shares. The company’s current on-market share buy-back will end on 28 December 2019.

· The new share buyback will be funded by a combination of working capital facilities and cash balances;

· The number of shares purchased, and timing will depend on the company’s share price and market conditions;

· The new share buyback is aimed to enhance shareholders return and capital efficiency.

Stock Performance

The stock of CIM was at $33.71 per share on 27th December 2019, up by 0.238% (at AEDT 12:58 PM). The company has a market capitalisation of $10.89 billion as on 27th December 2019 with an annual dividend yield of 4.67%. Its 52-week low and high is $28.880 and $51.500, respectively. The stock has given a total return of 5.89% and -25.47% in the time period of 3 months and 6 months, respectively.

NRW Holdings Limited (ASX: NWH)

NRW Holdings Limited is a diversified and leading provider of contract services to the infrastructure and resources sectors in Australia with major operations in South Australia, New South Wales, Western Australia, Victoria and Queensland.

NRW Grabs an Infrastructure Contract with Fortescue Metal Group

NRW Holdings Limited has announced that BGC contracting has been awarded an infrastructure contract with Fortescue Metal Group at its Eliwana Mine and Rail project located in the Pilbara region of WA.

· The total worth of the contract is $138 million and will support the development of 143km of rail for the Eliwana project;

· The project is scheduled to be completed by late 2020.

NRW to Acquire BHC Contracting

Contract services provider, NRW Holdings Limited has confirmed the acquisition of BGC Contracting for an equity value of $116.4 million.

· BGC Contracting provides services to the resources, energy and infrastructure sectors;

· It consists of existing contract portfolio and order book of about $1.5 billion;

· The company now has good visibility on FY20 earnings and expects to generate revenue of ~$850 million, EBITDA of ~$100 million and PBT of ~$29.5 million.

Stock Performance

The stock of NWH was trading at $3.240 per share on 27th December 2019, up by 0.31% (at AEDT 1:00 PM). The company has a market capitalisation of $1.37 billion as on 27th December 2019 with an annual dividend yield of 1.24%. Its 52-week low and high is $1.400 and $3.340, respectively. The stock has given a total return of 28.69% and 42.92% in the time period of 3 months and 6 months, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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