Morningstar - CIMIC Group Limited (CIM) No-Moat Cimic Beats 2017 NPAT Guidance and we Upgrade FVE by 9% to AUD 28

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Morningstar

Mark Taylor

No-Moat Cimic Beats 2017 NPAT Guidance and we Upgrade FVE by 9% to AUD 28

We increase our fair value estimate by 9% to AUD 28.00 from AUD 25.60, due to a combination of stronger near-term mining outlook, as evidenced in better than expected 2017 earnings, and the time-value-of-money. We now estimate high EBITDA margins in the mining segment to persist over the next two years, driven by ongoing strong demand from the mining related services. Cimic reported a 21% increase in 2017 NPAT to a top-of-guidance AUD 702 million, 4% ahead of our AUD 675 million target. The comp...

07/02/2018 12 EN

Underlying

CIMIC Group Limited

CIMIC Group is a construction company and the contract miner. Co. provides construction, mining, engineering, public-private partnerships (PPP), and operation and maintenance services to the infrastructure, resources and property markets. Co. comprises the following main segments: construction, contract mining, PPP, engineering, Habtoor Leighton Group, and commercial and residential. Co. delivers its services through several companies: CPB Contractors Pty Ltd, Leighton Asia Limited, Thiess Pty Ltd, Pacific Partnerships, and EIC Activities Pty Ltd. Co. operates across the Australia Pacific, Asia, Middle East and Americas regions in the infrastructure, resources and property markets.

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AU000000CIM7 Australian Securities Exchange Australia

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Mark Taylor

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No-Moat Cimic Beats 2017 NPAT Guidance and we Upgrade FVE by 9% to AUD 28

With a more favourable environment, CIMIC GROUP improves to Slightly Positive

Monthly LMI Update Independent Investment Research

2020 Asset Allocation and ASX Outlook

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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