NWH - NRW Holdings

[peter2]

NWH has shown it's strength relative to the index over the past three months (wkly chart). If price can close above the 2.65 this break out should see it go higher to near $3.00 (old high).

 

[galumay]

Sooner or later it had to rerate, its such a strong business, one of the best in the sector. Underpriced relative to value for a long time.

 

[peter2]

NWH did sneak higher to $3.15 (Jan 23) but since then price has drifted significantly (30%) lower to $2.20.

The recent news was within guidance with only a small reduction in their margins.

I've bought a small speculative position and will add when prices start to rally.

 

[divs4ever]

had an interesting ( but ultimately profitable ) adventure in this.

i bought in September 2012 ( @ $2.24 and $2.06 ) , April 2013 ( @ $1.40 ) , October 2014 ( @ $0.855 ) , February 2015 ( @ 0.265 ) and May 2015 ( @ $0.185 ) and selling ( reducing ) in August 2016 ( $0.64 ) , October 2016 ( @ $0.57 ) August 2017 ( @ $0.90 and $0.955 .. the same day ) and finally exiting in August 2018 ( @ $1.80 ) ( the clue is i bought a LOT more @ $0.265 and $0.155 , and sold the bulk of the total buys @ $1.80 )

can't promise i will return to this , but certainly not a 'bottom-drawer ' stock for me , but maybe i will find a suitable trading strategy for it in times to come .

 

[galumay]

I never trade, so cant comment on that, but I have owned for years, bought a lot more as they dropped, loaded up at 20c. One of the best in an unloved sector. I really dont understand why its so overlooked. Shouldn't complain, I have built a lot of wealth over the years as a result!

 

[rnr]

NWH did sneak higher to $3.15 (Jan 23) but since then price has drifted significantly (30%) lower to $2.20.

View attachment 154633

The recent news was within guidance with only a small reduction in their margins.

View attachment 154634
I've bought a small speculative position and will add when prices start to rally.

There is an unfilled gap of 14cents between $2.07 and $1.93 so will be interesting to see if the gap acts support.

Cheers, Rob

 

[peter2]

NWH news of new contracts worth $200M.
$122M from Lendlease and $78M mining.

Market liked it a lot.

 

[galumay]

A solid HY for NWH, the report as usual, clear and concise. I like that they credit external factors for most of the positives rather than claiming management expertise! Divvies backed to franked & nearly equal to my cost basis!

 

[Dona Ferentes]

“In the resources sector, the major miners have all announced large multi-year iron ore replacement and sustaining capital cycle projects, resulting in a visible pipeline of new mine developments, expansions, and upgrades”

- Market Statement, NRW Holdings Ltd​

 

[Dona Ferentes]

keeping busy,,, at $3.00, close to 12 month high
.
wholly owned subsidiary, Golding Contractors Pty Ltd has signed a variation to its existing 5-year Mining Services Agreement with Jellinbah Mining Pty Ltd at the Jellinbah East Mine in Central Queensland. The scope of the variation includes operating and maintaining a second 600 tonne excavator and 220 tonne rear dump truck fleet to mine pre-strip overburden, increasing the full scope of the agreement to two 600 tonne mining fleets. The variation is valued at approximately $160 million and will commence in April 2024 utilising existing owned fleet and supplemented with hire equipment.

NRW subsidiary Action Drill & Blast Pty Ltd has also been awarded the following contracts in Queensland.
1. Blasthole drilling services for Batchfire Resources at the Callide Mine. The contract, valued at circa $52 million over five years has commenced and will utilise a workforce of some 40 personnel.
2. Twelve-month extension to supply agreement with Dyno Nobel Asia Pacific Pty Ltd for Bowen Basin mine valued at $30 million.
3. Services Agreement (Drilling) Central Queensland mine – contract term three years, on an agreed rates basis with an estimated value of $28 million.

These contracts will also utilise existing ADB owned equipment where applicable.

 

[galumay]

Still not expensive either for such a good business, of course in a disliked and misunderstood sector. Reported a profit for 15 of the last 16 years, double digit revenue growth over many years, strong dividend growth and high ROE & ROIC. If this was a tech company with these sort of metrics it would trade at 50x!

 

[peter2]

In a down week NWH has been in demand.

 

[galumay]

Another solid year for NWH, nearly $3b in revenue, steady double digit growth in all metrics, strong order book and pipeline of contracts already awarded.

 

[Dona Ferentes]

now $3.85 .. AGM today

Outlook & Guidance
We're optimistic about delivering strong growth in both revenue and earnings for FY25 and beyond, supported by a record $7 billion in secured work.

We continue to expect our revenue for FY25 to exceed $3.1B and expect EBITA to be range of $205M to $215M.

 

[galumay]

Sounds like bad news for NWH, trading halt pending announcement on SIMEC contract, due for extension 31/01/25. The first 3 years was circa $600m so its a significant contract.

 

[galumay]

OK, Its because of this obviously,

Whyalla steelworks placed in administration after South Australia rushes legislation to secure its future

Move allows government to act on millions dollars in debts owed by GFG Alliance and secure future of mid-north operations

www.theguardian.com

 

[Dona Ferentes]

scramble ...

NRW Holdings Limited (ASX: NWH) – Request for voluntary suspension.

Pursuant to Listing Rule 17.1, NRW Holdings Limited ACN 118 300 217 (NRW) requested, and was granted, a trading halt in respect to its securities on 19 February 2025. The trading halt was to last until the earlier of NRW making an announcement to the market or the commencement of normal trading on Friday 21 February 2025.

The basis of the trading halt was the South Australian Government appointing administrators to Onesteel Manufacturing Pty Ltd which was the contracting entity for NRW subsidiary Golding Contractors at the SIMEC operations in Whyalla.

Given NRW had effectively completed and was due to release its half year results on the 20 February 2025 the appointment of administrators to Onesteel has necessitated NRW and its auditors to consider any implications, as a subsequent event.

NRW therefore requests a voluntary suspension until the company is in a position to provide the market with an update to the SIMEC position and the timing of the release of the half year results, expected to be no later than Friday 28 February 2025

 

[galumay]

Makes sense, the timing was unfortunate, renewal of the contract up just as SIMEC fell over & H1 report due.

 

[galumay]

Another very good half for NWH, for some reason they have moved away from reporting NPAT, and use some bull**** adjusted earnings, odd because the bull**** earnings are flat for the half while NPAT is up 25%!

Looks like no meaningful impact from the One Steel admin issue.

See here for NPAT. (Net Earnings)

 

[galumay]

Tell me again about the Efficient Market Hypothesis! $NWH down 12% having posted a very solid half year and a clear explanation of the very small exposure to the One Steel issue.