GCS global construction services limited

FY 18 Guidance

  1. 62 Posts.
    lightbulb Created with Sketch. 10
    Given the guidance with the latest release stock looks pretty interesting;
    - NPAT attributable 12.4-13.4m = ~PE of ~12.1-12.5x (at SP 74c)
    - if we assume they pay another divi of 2cps then stock is on an annualised yield of 5.4% FF (ie 4c DPS /74c SP)
    - I assume they will have to fund the recent contract wins so CAPEX will increase and Cash may decrease a bit but you have to fund growth somehow - overall a positive for future earnings momentum.
    - Happy to accumulate a few at these levels - anyone with any other thoughts ?
 
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