AusGroup

AusGroup: Secured additional fabrication work worth $26m on a Chevron-operated project, taking total contract value to $364m. 3 contracts in 3 weeks, the Group secured $65m worth of contracts within the short span of time this year. With the Company entering the development phase now that the planning stage is complete, DMG noted that the Group could continue to see more winning O&G-related orders. Potential candidates for spillover effects: CSE Global may see some positive spillover effects from the West Australian offshore and mining sector, in the recent order wins by AusGroup and Civmec; Technics Oil & Gas could be a beneficiary for its new Vietnam yard from Chevron as well; Tat Hong is another potential beneficiary with its infrastructure equipments, from the LNG boom in Australia. Stock is trading at 9x P/E, vs Civmec at 20.3x. OSK DMG maintains BUY with TP at $0.76.