Civmec

Civmec: 4QFY13 net profit improved 9.7% y/y to $9.2m due mainly to a government R&D tax incentive of $1.2m. Otherwise, earnings would have came off 5%. Revenue plunged 30% to $79.4m due to the timing of revenue recognition from engineering projects. Overall FY13, net profit rose 18.9% to $36m while revenue gained 23.5% to $405.9m. Civmec's Oil & Gas segment achieved a 81% surge to $143.6m for FY13, while mining and others were stable at $262.3m (+5%). Managment's outlook on the O&G and mining sector in Australia remain positive, while demand for infrastructure projects remain steady. Civmec's NAV per share improved 23% to 21.99¢ The group increased final dividend to 0.7¢, from the 0.6¢ the previous year. Valuation wise, Civmec trades at 9.2x trailing P/E compared to Ausgroup's 8.4x.