Watpac Limited (WTP)

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General Information
Company Name: Watpac Limited
Stock Code: WTP
Website: www.watpac.com.au
GICS Sub-Industry: Construction & Engineering
Market Cap ($M): 177
Equiv. Shares (M): 186

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.950 $ 0.940 $ 0.950 $ 0.930 $ 0.940 72,864 $ 0.010  1.064 %

Company Overview

Business Description:
Watpac Limited (WTP) is involved in contracting and property developing businesses. WTP is headquartered in Brisbane with operations supported by offices in Townsville, Adelaide, Melbourne, ACT, Sydney, Darwin and Perth. WTP consists of four business divisions: Civil & Mining, Property, Construction and Specialty Services.

Strategy Analysis:
WTP is committed to expanding from a single focus construction company, to extending operations into property development and geographically across the eastern states of Australia. The next phase in the company's evolution is focused on becoming a major eastern seaboard construction and property player. Diversifying across the eastern states is planned to provide natural geographic diversification from individual economic fluctuations. Given that earnings are expected to remain strong due to a number of State government infrastructure projects and the strong demand for resources, emphasis will be placed on risk management strategies. This will effectively manage the risks associated with these complex projects. Policy framework updates, site visitations and management presentations will continue to be part of the risk monitoring process. . Watpac reported NPAT down 74.17% to $1.26m for the half-year ended 31 December 2012. Revenues from ordinary activities were $943.9m, up 47.59% from last year. Basic and Diluted EPS was 0.69 cents compared to 2.65 cents last year. Net operating cash flow was $105.21m compared to $49.47m last year. No dividend was declared.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  A 18.4 9.9 6.5 8.4 6.0 7.2 49.0
2013  A 17.2 9.3 12.0 7.1 0.0 0.0 --
2012  A 15.3 8.3 -9.8 13.2 1.5 1.4 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Cardno (CDD) $1,040 M -0.0527 0.0261 0.0759 12.5864 12.2665 11.4015 5.65 5.65 6.32
Leighton (LEI) $6,966 M 0.1277 0.1537 0.0221 13.7109 11.8843 11.6278 5.10 5.59 5.61
Monadelphous (MND) $1,292 M -0.1184 -0.1050 -0.0486 9.2590 10.3448 10.8733 8.84 8.28 7.87
UGL (UGL) $1,062 M -0.1853 0.4594 -0.3365 14.1526 9.6975 14.6163 0.00 4.00 4.32
Watpac (WTP) $175 M 0.0612 -- -- 9.5142 -- -- 6.38 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
WTP -- 9.62 0.70 -- 0.15
Market 0.94 15.7 1.29 1.73 1.56
Sector 1.02 12.1 0.97 1.43 0.46

Name Position Start Date
Mr Carlo Schreurs Alternate Director 27 May 2013
Mr Christopher Freeman Non-Executive Chairman 05 May 2011
Mr Richard (Dick) B McGruther Non-Executive Deputy Chairman 17 February 1993
Mr David M Little Non-Executive Director 14 May 1985
Mr Robert James Lette Non-Executive Director 23 May 1996
Mr Garret Dixon Non-Executive Director 12 February 2014
Mr Johan Beerlandt Non-Executive Director 27 May 2013
Mr Brad Bowton Non-Executive Director 28 August 2013

Name Position
Martin Monro Chief Executive Officer
Mark A Baker Chief Financial Officer,Company Secretary
Errol Edwards General Manager, Construction
Russell Hall General Manager, Mining & WA Civil
Robert McDonald General Manager, Property

Substantial Shareholders
Holding Name
30,478,096 (16.53%) Besix Group SA
11,066,635 (6.00%) Commonwealth Bank of Australia
10,198,805 (5.53%) Acorn Capital Limited

Calendar of Events
Date Event
18 August 2015 Report (Prelim)
24 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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