Updates on Five Industrial Stocks – CLQ, PPE, KSC, LYL, DCG

The benchmark index S&P/ASX 200 was trading at 6,712.6, up 0.36%, while S&P/ASX 200 Industrials (Sector) was trading upward by 1.25% to 6,830.8 on 1^st October 2019 (AEST 12:35 PM). The companies which are involved in the businesses of manufacturing and distribution of capital goods, primarily including aerospace & defense, construction, engineering & building products, and electrical equipment are part of the industrials sector. Most of the companies in this industry are providing decent returns to shareholders. Let’s discuss five industrial stocks with their recent updates:

Clean TeQ Holdings Limited

Based in Victoria, Clean TeQ Holdings Limited (ASX:CLQ) is an industrial sector player that is into providing metals recovery and industrial water treatment. The company applies its Clean-iX^® continuous ion exchange technology to serve its clinets. Notice of Meeting As per a release dated 30^th September 2019, the company announced that it would be conducting its 2019 Annual General Meeting on 31^st October 2019. Following resolutions would be considered during the meeting:

• Resolution 1: Adoption of Remuneration report.
• Resolution 2: Election of Mr Shawn Wang as a director of the company.
• Resolution 3: Re-Election of Mr Michael Spreadborough as a director of the company.
• Resolution 4: Re-Election of Ms Stefanie Loader as a Director of the company.
• Resolution 5: Approval to issue 348,742 performance rights to Mr Sam Riggall.
• Resolution 6: Approval to issue 408,117 performance rights to Mr Sam Riggall.
• Resolution 7: Approval to grant options to Mr Sam Riggall (or his nominee).
• Resolution 8: Approval of 10% placement facility.
• Resolution 9: Holding a spill meeting.

Sunrise Battery Materials Complex Project On the same day, Clean TeQ Holdings provided an update to the market regarding its wholly owned Sunrise Battery Materials Complex in central NSW.

• The company reported that the work is continuing in order to place the Sunrise Battery Materials Complex project among the nickel/cobalt development projects (leading and most advanced), globally.
• Additionally, progress continues to be made with front end engineering and design.

For the financial year 2019, the company reported an increase of 2% in revenue. On 1^st October 2019 (AEST 12:47 PM), the stock of CLQ was trading at $0.307 per share, up 0.656% from its previous close. The stock has generated a return of -24.69% and 1.67% during the last three months and six months, respectively.

People Infrastructure Ltd

People Infrastructure Ltd (ASX: PPE) is in the provisioning of workforce management, contracted staffing, recruitment as well as human resources outsourcing services. The company recently announced that it would be conducting its 2019 Annual General Meeting on 26^th November 2019. In another market update, the company announced that IOOF Holdings Limited made a change to its substantial holdings in PPE on 3^rd September 2019 and the current voting power stands at 7.616% as compared to the previous voting power of 8.932%. Financial Performance For the twelve months ended 30 June 2019 (full year), the company updated the market with its financial performance for the period:

• Statutory EBITDA of PPE stood at $19.2 million, while normalised EBITDA witnessed a rise of 36.8% as compared to normalised FY18 EBITDA and the figure stood at of $17.8 million.
• Normalised NPATA stood at $12.1 million with an increase of 43.6% from FY18.
• The company reported revenue amounting to $278,155 in FY19 as compared to $219,400 in FY18, up 26.8% year-on-year. The company reported a CAGR growth of 22.5% in the span of FY15-FY19.
• During the period, the company declared a final dividend amounting to 4.5 cps (fully franked), reflecting a rise of 12.5% than FY18.

On 1^st October 2019 (AEST 01:14 PM), the stock of PPE was trading at $3.100 per share, down 1.899%. The stock has generated a return of -2.17% and 34.18% during the last three months and six months, respectively.

K&S Corporation Limited

Transport and logistics solutions provider, K&S Corporation Limited (ASX:KSC) offers services related to contract management, warehousing and distribution. Retirement of Director

• As per a release dated 24^th September 2019, the company updated the market that Mr Ray Smith would be retiring as independent non-executive director after eleven years.
• This would come into effect from the conclusion of the annual general meeting on 26 November 2019.

Full Year Results As per a release dated 30^th August 2019, K&S Corporation Limited updated the market with its full year results for the period ended 30 June 2019:

• The company reported statutory profit before tax of $3.2 million for the period, reflecting a fall of 87% in comparison to the pcp.
• It added that the current year was significantly affected by the full year impact of increased rail network costs after the closure of its rail provider Aurizon in the financial year 2018.
• For the year ended 30^th June 2019, the operating revenue stood at $905.2 million, reflecting a rise of 7.2% in comparison to pcp.
• The company did not declare any final dividend in the period.

On 1^st October 2019 (AEST 01:16 PM), the stock of KSC was trading at $1.810 per share, down 0.549. The stock has generated a return of -0.27% and 2.25% during the last three months and six months, respectively.

Lycopodium Limited

Australian headquartered engineering and project delivery group, Lycopodium Limited (ASX:LYL) serves industries including metallurgical, rail and manufacturing. On 30 September 2019, the company released its annual report for the financial year 2019. What’s Trending in the company?

• The company recently announced that Peter De Leo, one of its directors, made a change to his holdings in the company via disposing 200,000 ordinary shares at a consideration of $1,064,115 on 13^th September 2019.
• In another update, LYL stated that Celeste Funds Management Limited became an initial substantial holder in the company with a voting power of 5.46% on 13^th September 2019.
• Meanwhile, Caddy Fox Pty Ltd ceased to be a substantial holder in the company on 6^th September 2019.

Appointment of New CFO and CS As per a release dated 9^th September 2019, the company announced that it has appointed Justine Campbell as its Chief Financial Officer and Company Secretary. His appointment became effective on 30^th September 2019. A Look at FY19 Results: The company published its results for the financial year ended 30 June 2019 on 28^th August 2019, wherein it mentioned following key metrics:

• The company reported revenue and a net profit after tax amounting to $154 million and $16.51 million, respectively.
• For the financial year ended 30^th June 2019, the Board of Directors declared a final dividend amounting to 15 cents per share, which was in accordance with the dividend policy.

On 1^st October 2019 (AEST 01:24 PM), the stock of LYL was trading at $5.500 per share, up 1.103%. The stock has generated a return of 11.02% and 8.80% during the last three months and six months, respectively.

Decmil Group Limited

Engineering construction services provider, Decmil Group Limited (ASX:DCG) caters to the sectors including infra, resources and renewable energy. On 1^st October 2019, the company announced that it would hold its annual general meeting on 6^th November 2019, during which following resolutions would be considered.

• Resolution 1 – Adoption of Remuneration Report
• Resolution 2 – Re-election of Mr David Saxelby as Director
• Resolution 3 – Re-election of Mr Bill Healy as Director
• Resolution 4 – Issue of Performance Rights to Mr Dickie Dique

Issue of Shares

• The company recently announced that it has issued 155,874 fully paid ordinary shares.
• The shares have been issued with respect to its Employee Share Purchase Plan.
• It further added that the new shares rank equally with existing shares on issue; however, 50% of the shares would be subject to a holding lock until the earlier of three years from the date of issue and cessation of employment with the company.

Change in Director’s Interest Scott Criddle, one of the company’s directors, made a change to his holdings (direct and indirect) in the company by purchasing 1,216,667 performance rights, and 606,122 ordinary shares. Financial Performance

• For the year ended 30^th June 2019, the company posted record construction & engineering revenue amounting to $659.1 million, reflecting a rise of 96% in comparison to pcp.
• Group EBITDA stood at $24.1 million, while operating cash flow before interest and tax stood at $29.1 million.
• With respect to operations, the company reported strong safety performance with a total recordable injury frequency rate of around 5, with 0 for the Western region.

On 1^st October 2019, the stock of DCG was trading at $0.885 per share, up 0.568%. The stock has generated return of -3.26% and 6.59% during the last three months and six months, respectively.

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