MXI has moved to leverage its rapidly expanding truck and trailer parts operation with the acquisition of Queensland Diesel Spares Pty Ltd (QDS), which operates 9 specialty retail locations in Queensland. The QDS acquisition is highly complementary to MXI’s existing Colrain Truck & Trailer Parts operation and effectively doubles the group parts business. As a result of the transaction we have increased our FY13F EPS by 16.4% to 8.2cps, which places MXI on an attractive FY13 PER of 6.2x and a dividend yield of 9.8% fully franked.
Our price target has increased by 10% to $0.68 and our recommendation remains a BUY.
From BGF.
MXI Price at posting:
51.0¢ Sentiment: ST Buy Disclosure: Held
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