CIMIC – High Conviction Idea Delivers A 20% Return

From our Monday “opportunities in review” webinar, CIMIC was a high conviction buy idea heading into earnings season.

The strong share price reaction to last week’s 1H profit  announcement  sent CIMIC shares  20% higher.

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The result came in ahead of analysts forecast with revenue growth and profit growth of more than 10%.

1H Revenue +11% to $6.9 billion, EBITDA of $794 million +11% and NPAT $363 million +12% and on the same time last year. 

Whilst the stock price now looks full value based on a forward yield of 3.3%, we continue to like the longer-term fundamentals.

Cimic Group

 

Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks