MGH - MAAS Group Holdings

[System]

MAAS Group is a leading independent Australian construction materials, equipment and services provider with diversified exposures across the civil, infrastructure, mining and real estate end markets.

MAAS Group operates a vertically integrated and diversified business model in key growth markets in Australia, with a strong presence in regional areas, and has an emerging international presence.

MAAS Group holds strong market positions in each of its complementary segments:

Construction Materials operates in NSW under the ‘Regional Group’ brand, with 20 strategically located quarries (nine operating and 11 expected to commence production in the near future), one of the largest mobile crushing and screening operations in NSW, and it is in the process of growing its Premix and Precast Concrete business unit in NSW.

Civil Construction and Hire provides construction and above ground plant hire services to major civil and infrastructure projects in Australia, electrical infrastructure works across NSW, and underground electrical equipment manufacture, hire, and sales for tunnelling and underground hard‑rock mining.

Real Estate develops residential housing estates, primarily focussed on regional centres in NSW that have been designated by the NSW Government as ‘leading regional cities’. The business also has a growing pipeline of future industrial properties, commercial properties, and development opportunities.

Underground Equipment and Services specialises in providing mobile equipment for the underground tunnelling and mining industries in Australia and globally.

It is anticipated that MGH will list on the ASX during December 2020.

Home | Maas Group Holdings

maasgroup.com.au

 

[Dona Ferentes]

MAAS Group Holdings opened at a 20 per cent premium to its float price in its ASX debut.
Shares in the construction materials, equipment and services provider were sold at $2 each, raising $145.6 million.

Started at 2.40, now $2.35 early into Day One

 

[Dona Ferentes]

MAAS Group said it is performing in line with internal budget forecasts and continuing to build its forward order book.

The construction materials business is on track and production at fixed plant quarries is in line with its budget. The second half will result in an additional quarry brought online.

The plant hire and civil business is tracking ahead of its internal budget. It has a "strong" order book and some "significant" project wins have materially increased plant utilisation.

The residential housing estates is trading "well", while commercial property project are "tracking as planned".

However, recent trading in the underground business has experienced a decrease in utilisation due to some large hire contract running off. A return to normal utilisation is expected in the second half.

 

[Dona Ferentes]

Maas Group founder and Young Rich Lister Wes Maas has made a $58.9 million paper profit this morning after shares in the company he founded as a 22-year old hit the boards at a 20 per cent premium to its $2 issue price.

Mr Maas owns 55 per cent of Maas Group, which he founded after buying one bob cat in 2002. He is now just 40 years old. His stake in the group was worth $353 million on Friday morning after the group's shares opened at $2.40.

Maas Group is on the hunt for acquisitions

 

[Dona Ferentes]

How did we go on Day One? ($2.00 Issue Price)

 

[Dona Ferentes]

How did we go on Day One? ($2.00 Issue Price)

and how are we doing 3 months after listing?

Managing Director and Group CEO Wes Maas said that MGH had enjoyed a solid performance for the half year in line with expectations. Mr Maas highlighted that the Civil Construction and Hire division led the performance for the first half. MGH expects a stronger contribution from the other segments for the remainder of the year as earnings become more diversified as the scale of business across the segments increases. Mr Maas noted that MGH was well positioned for a strong FY 21 result given its exposure to infrastructure spending as well as strong regional demand for services and real estate.

“We have invested heavily in recent years to position the company to take advantage of the increased investment in major infrastructure projects for both the current year and for the years ahead. “Our strategic investment discipline and regional focus has provided us with the ideal platform to achieve long term growth”.

Mr Maas highlighted the significant investment in quarries in recent years noting a number of quarries will open over the next 12 months coinciding with the commencement of major infrastructure works in the regions.
Mr Maas noted the 11% growth in Proforma EBITDA before fair value increments. The Commercial Property portfolio is expected to recognise fair value increments in the second half of FY 21 upon the achievement of certain milestones.
The above ground and underground plant hire businesses will be integrated over the next few months to maximise operating efficiencies and promote cross sell opportunities.

Guidance
The business remains on track to deliver strong earnings growth in the second half of the financial year and provides guidance for Proforma EBITDA for the year ended 30 June 2021 in the range of $70m - $77m. The guidance is based on the existing business of MGH as at 31 December 2020 and includes fair value increments for the Commercial Property portfolio which are expected to be similar to those achieved in FY 20.
Mr Maas noted that the expected solid second half to the year would include increased contributions from the Construction Materials and Real Estate segments to 30 June 2021, consistent with MGH’s core strategy of these segments being pillars of growth for the company and reflecting recent capital investment by the company in these segments.

paying a Dividend

 

[Dona Ferentes]

The cap raise of $79M at $5.50 may have been a bit to keenly priced. MGH hit $6.20 for a wee while on 28 June but lost it when CR announced ..... and is currently $4.80.

SPP looking for $15 million, closes in a week !?!?!

 

[mullokintyre]

Bit too early for me to jump into this one, though they seem to have a pretty good order book.
Forecasts for 2022 seem bullish, but at a forecast P/E of 34, I wonder if all that expected work is already priced in?
Mick

 

[finicky]

Wouldn't touch it. Worth less than 3x book value in my eyes and that assumes at least sustaining the current profit level. Trading at 4.7x bv. P/E of 31. How can we tell it has growth potential with 1 year on the bourse?
Suspect it could be another IPO that cynically launches at the peak of good times for the enrichment of insiders, records a good year or two, then crashes into a cycle downturn. Haas sure helped himself to a big trough full in the IPO, not going to play into him getting richer.

The chart is back at a critical level - lower highs and barely holding the level of 4.25. That pretty much constitutes a descending right angled triangle which doesn't inspire optimism. Positive volume bars last two weeks - so ambivalent but critical chart. I'll pick down, allowing for possibility of a short rally.

Weekly

 

[Looseunitwa]

Hi there
MAAS stock price fallen a third in 1 month and over 50% in 6 months.
It's Company numbers, balance sheet etc seem pretty strong.
Owners and board recently bought over $8 million in shares themselves.
What's the give on continual decline. Any thoughts?

Cheers Looseunitwa

 

[finicky]

I'll be trying to pick the chart if buying and this is not a chart I'm buying yet. No sign of a turnaround yet, let alone a confirmation? Superficially it looks value at this price but IPO's are an insider racket imo and you never know what's beIng concealed that's a year or two down the track. Also anything to do with building has been having travails. I haven't read the annual report so someone with more acumen might be able to see sustainable value - that's not me. Also there appear to be more 'value traps' around lately as I found by incrementally building up a CDA position.

Not Held

All Data Weekly

 

[finicky]

Lowest price since listing, AGM should be second week of November, so Chairman and M.D address then. Half year results not until late February, going by last year. Kind of interested after light reading. It's not exceptionally cheap yet in my book and can it sustain earnings strength.
Chart is daily closing price with 20, 50, 100 dma

Not Held

 

[finicky]

Bottom might have been made? Looks like a reasonable chance anyway - at least there are some positives to hang the hat on. 100% of the ebullient rise from the day of listing has been undone and last 5 weeks of candles look strongish when taken together. I'd be very tempted for a speculative first bite if I were in buying mode instead of selling mode. Good fy22 results and I quite like the m.d's agm remarks.

Not Held

All Data Weekly

 

[Miner]

Any clue why the CEO keeps on buying and making the stock illiquid ?

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02608356-2A1418320?access_token=83ff96335c2d45a094df02a206a39ff4

 

[finicky]

Another chart that looks healthy today? I can't buy anything but I like this meat (tofu) and potatoes company, with the founder m.d holding a huge stake (for nothing) and that the company owns lots of stuff like: quarries and service provision equipment and land for development - real peasant fare in an age of the intangible like crypto and growth companies without earnings. MGH has guided ebitda and eps growth in fy23.

Not Held

 

[Miner]

Another chart that looks healthy today? I can't buy anything but I like this meat (tofu) and potatoes company, with the founder m.d holding a huge stake (for nothing) and that the company owns lots of stuff like: quarries and service provision equipment and land for development - real peasant fare in an age of the intangible like crypto and growth companies without earnings. MGH has guided ebitda and eps growth in fy23.

Not Held

View attachment 150805

Spudshed ?

 

[finicky]

Just a chart. Been dithering over a small initial purchase here but might have missed the opportunity. Could be a big hammer reversal candle shaping up? With 'stopping volume'? Early yet to say. But this sharp down move has retraced 80% of the +3 month rally from the $2.20 November low.
Just my rough valuation - $4 - and ignores complexity in the financial report but I did subtract a few conservative adjustments.

Not Held

 

[Miner]

Just a chart. Been dithering over a small initial purchase here but might have missed the opportunity. Could be a big hammer reversal candle shaping up? With 'stopping volume'? Early yet to say. But this sharp down move has retraced 80% of the +3 month rally from the $2.20 November low.
Just my rough valuation - $4 - and ignores complexity in the financial report but I did subtract a few conservative adjustments.

Not Held

View attachment 153500

Thanks finicky
Don't understand why market punished with 9% drop.

For me it's an excellent result.
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[finicky]

@Miner, an interesting high volume weekly candle made by MGH last week. Record volume actually. Mentioned out by Gary Glover in Finer Market Points @ 23.44
A lotta sellers matched by a lotta buyers after a long downtrend. 'Inside' weekly 'doji'candle suggesting indecision.

Not Held

All Data Weekly

23.44

 

[Miner]

@Miner, an interesting high volume weekly candle made by MGH last week. Record volume actually. Mentioned out by Gary Glover in Finer Market Points @ 23.44
A lotta sellers matched by a lotta buyers after a long downtrend. 'Inside' weekly 'doji'candle suggesting indecision.

Not Held

All Data Weekly
View attachment 154002

23.44

Thanks @finicky
I actually sold on Friday ?