Transpacific Industries Group Ltd (TPI)



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General Information
Company Name: Transpacific Industries Group Ltd
Stock Code: TPI
Website: www.transpacific.com.au
GICS Sub-Industry: Environmental & Facilities Services
Market Cap ($M): 1,422
Equiv. Shares (M): 1,580

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.900 $ 0.900 $ 0.922 $ 0.890 $ 0.900 7,969,939 0%

Current Broker Consensus Recommendation more
Recommendation: Buy (1.75)
Recommendation Date: 30th Oct 2014
Brokers Surveyed: 4

Company Overview

Business Description:
Transpacific Industries Group Ltd (TPI) provides integrated industrial cleaning, recycling and total waste management solutions to customers across Australia and New Zealand. TPI is also a player in the domestic heavy-duty commercial vehicles industry.

Strategy Analysis:
In the mid 2000’s, Transpacific grew exponentially – boasting 220% revenue growth from 2005 - 2008. Sadly, drivers were far from organic, propelled by the acquisition of 47 separate companies costing AUD 2.6 billion. Cheap credit and an ambitious CEO fuelled the acquisition binge, leading to a near collapse during the GFC. Despite a volatile past, Transpacific is a leading provider of waste management and environmental services with an asset base covering primarily Eastern Australia and New Zealand. Fiscal 2012 was a year focused on strategic emphasis, improving profitability and reducing debt. Growth initiatives and cost efficiencies are now planned for fiscal 2013 and beyond, focusing on new municipal contracts for Cleanaway, expansion of hydrogenation capacity in Industrials, and new contract wins in New Zealand. Transpacific Industries Group reported NPAT of $32.3m for the half-year ended 31 December 2012. Revenues from ordinary activities were $1.16bn, up 3.8% from the same period last year. Basic and Diluted EPS was 2.0 cents compared to 0.7 cents last year. Net operating cash flow was $120.0m compared to $99.3m last year. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 125.4 8.0 17.0 11.3 5.0 5.6 100.0
2015  F 107.2 6.8 16.5 13.3 4.0 4.4 100.0
2014  A 92.0 5.8 35.5 18.2 1.5 1.4 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
ALS (ALQ) $2,240 M -0.3147 -0.2718 0.1895 12.4310 17.0710 14.3513 6.93 4.72 5.00
Tox Free Solutions (TOX) $321 M -0.0817 0.0097 0.2227 13.6986 13.5670 11.0957 2.50 2.62 3.23
Transpacific Ind. (TPI) $1,422 M -- -- 0.0500 -- 16.0714 15.3061 1.67 3.38 4.44

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
TPI 1.96 -- 0.79 -- 1.00
Market 0.94 15.8 1.24 1.88 1.55
Sector 0.97 13.7 1.36 1.27 0.77

Directors
Name Position Start Date
Mr Mark Chellew -- 01 March 2013
Mr Michael Harding -- 01 March 2013
Mr Robert Boucher Chief Executive Officer,Executive Director 18 December 2013
Ms Emma Stein Non-Executive Director 01 August 2011
Raymond Maxwell Smith Non-Executive Director 01 April 2011
Mr Terry Sinclair Non-Executive Director 01 April 2012
Mr Philippe Etienne Non-Executive Director 29 May 2014
Mr Martin Moule Hudson Non-Executive Director,Non-Executive Chairman 14 September 2009

Management
Name Position
Stewart Cummins Chief Financial Officer
Kellie R Smith Company Secretary
Brenda Mello Executive General Manager Human Resources (Acting)
Dan Last General Counsel,Joint Company Secretary
Nick Clark Managing Director Cleanaway
Paul Glavac Managing Director Commercial Vehicles Group
Anthony Roderick Managing Director Industrials Australia
Tom Nickels Managing Director Transpacific Industries Group (NZ) Ltd

Substantial Shareholders
Holding Name
85,549,702 (5.42%) National Australia Bank Limited and associated companies
83,651,700 (5.29%) Cooper Investor Pty Ltd
533,898,815 (33.82%) WPX Holdings BV

Calendar of Events
Date Event
25 September 2015 Report (Annual)
18 August 2015 Report (Prelim)
13 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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