Share Prices Making Noise: SRG Global, MACA, Tamawood and dorsaVi

  • Jul 03, 2020 AEST
  • Team Kalkine
Share Prices Making Noise: SRG Global, MACA, Tamawood and dorsaVi

Summary

  • SRG Global, MACA, Tamawood and dorsaVi shares made significant gains on the ASX on 2 July 2020, influenced by the positive announcements; interim dividend payment of 0.5 cents per share brought forward to 30 July 2020.
  • MACA has been awarded Corunna Downs Mining Services’ contract for Atlas Iron Pty Ltd. MACA anticipates ~A$230 million revenue from this project over 62 months.
  • While Tamawood expects a slight improvement in its FY2020 results, it remains debt-free and could benefit from the HomeBuilder grant.
  • dorsaVi signed a commercial collaboration with QBE Australia. QBE Australia has pre-assigned A$250,000 for the first 12 months.

The coronavirus pandemic has led to a gloomy atmosphere around the world with the infectious disease severely affecting human health and the world economy. In such difficult times, market participants seek positive news to lift their sentiments.

Several companies trade on the stock exchanges, with each offering a unique set of products and services to individuals and corporates. Some industries have done well while others have struggled in recent times.

ASX-listed players SRG Global, MACA, Tamawood, and dorsaVi, belonging to different industries, showed significant growth in their share price by the market closure on 2 July 2020.  Encouraging announcements that can catalyse market sentiment and the share price deserve special attention.

Let us cast an eye on the same.

SRG Global Limited (ASX:SRG)

SRG Global Limited is engineering-driven expert maintenance, mining services & construction group that is formed to answer the complicated problems across the total asset lifecycle.

Market Update:

On 2 July 2020, SRG Global provided its market update along with the COVID-19 impact. The Company highlighted the various actions it took to ensure the well-being of its people, continuity of the delivery of the services to clients, along with the cost lessening steps to maintain a robust financial position.

The measures adopted by the Company made the business simple with lowered fixed cost base. It also made the Company focus on its core business, clients, and geographies.

SRG also confirmed that the initiatives supported the Company to withstand the short-term market challenge. Further, it is well-positioned for long-term sustainable growth, with high levels of annuity earnings, solid exposure to growth industry sectors & the fast-tracking of Government stimulus in Infrastructure Construction.

The announcement had a positive impact on the shares as, by the market closure, the shares settled at A$0.245, skyrocketed by ~29%. On 3 July 2020, SRG shares closed at A$0.240, down 2.041%.

For FY2020 ended 30 June 2020, SRG Global expects its underlying EBITDA in the range A$20 million to A$21 million. FY2021 EBITDA growth is projected at around 50% from FY2020 underlying EBITDA. Also, the Company confirmed that the interim dividend payment of 0.5 cents per share is brought forward to 30 July 2020.

Business Outlook:

  • SRG has work in hand of A$707 million and an opportunity pipeline of A$6.2 billion.
  • Forthcoming or near-term contract win in Asset Services, Specialist Civil and Specialist Facades.
  • Asset Services anticipate returning to normal levels of activity in Q1 FY2021.

MACA Limited (ASX:MLD)

MACA Limited is amongst the leading diversified contracting groups in Australia with operations spanning across Australia and globally.

Mining Contract Award:

On 2 July 2020, MACA announced that it was awarded the “Corunna Downs Mining Services’ contract for Atlas Iron Pty Ltd (Atlas). The project is situated 33 km to the south of Marble Bar in the Pilbara area in Western Australia. It comprises of open-pit mining services which include drilling and blasting plus loading and hauling. MACA anticipates generating ~A$230 million revenue from this project over 62 months. Presently, MACA has total work in hand worth A$2.2 billion.

Working Capital Update:

MACA is in a strong liquidity position with substantial cashflow collections resulting in A$113 million of cash and net debt of A$74 million as at 30 June 2020.

Stock Information:

The announcement had a positive influence on its share price. By the market close, MLD shares improved by 4.878% and settled at A$0.860, up ~4.88% from the previous close. On 3 July 2020, MLD stock closed at A$0.875, up 1.744%.

Tamawood Limited (ASX:TWD)

Tamawood Limited is into the business of providing home design as well as preliminary project management services and related services. It also includes home contract construction activities in preferred markets.

Dividend Update:

On 2 July 2020, the Board of Tamawood provided dividend update and its present cash position. The Board confirmed that the Company has net cash of A$6 million and it might enable them to reinstate dividends in the 1H FY2021. At the same time, the Company confirmed that the dividend amount would be determined and revealed by the Company’s Board once the Auditors review final year accounts.

TWD’s Projections on FY2020 Results:

Earlier on 11 June 2020, the Board released an announcement where it pointed that there might be a slight improvement in FY2020 results as compared to FY2019 based on the unaudited figures. The factors contributing to the results are:

  • Delay in council approvals.
  • Delay in the bank financial consents from clients.
  • Inclement weather in early 2020 triggering postponements on site.

The Company is presently debt-free and is in a strong position to exploit improving enquiries due to ‘HomeBuilder’ grant.

Stock Information:

Based on the announcement, it appears that there is a positive sentiment around this which supported it to soar high on ASX by the market close on 2 July 2020. TWD shares zoomed up by ~6.75% from the previous close and settled at A$2.69. The shares continued to trade in the green zone and ended at A$2.780 on 3 July 2020, up 3.346%.

dorsaVi Ltd (ASX:DVL)

dorsaVi Limited is a biotechnology Company that is engaged in the development of innovative motion analysis device technologies. The products offered are used by elite athletes as well as sporting teams, corporate OH&S, and health care professionals handling back pain and sports injuries.

dorsaVi Signed a Commercial Collaboration with QBE Australia

On 2 July 2020, dorsaVi Limited announced that it had entered a commercial collaboration with QBE Australia under which it would be providing QBE customers with access to wearable sensor technology along with the data insights to reduce movement risk, injury claims plus workers compensation premiums.

QBE Australia has pre-assigned A$250,000 for the first 12 months to allow their existing and new customers to have access to dorsaVi’s ViSafe and myViSafe technology and resulting data insights.

DVL’s on-body sensors would be used in real-time and real work conditions to examine and assess the movement & muscle activity, quantify movement risk and guide decision making on proper risk lessening approaches.

Stock Information:

DVL stock skyrocketed on ASX by the market closure on 2 July 2020 by ~277% and settled at A$0.049. On 3 July 2020, DVL stock closed at A$0.037, down 24.49%.

 


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