Australian (ASX) Stock Market Forum

SGH - SGH Limited

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DrBourse said:
5/5/23 11am – SVW looks interesting……

Note the Entry Signals, Blue Triangles & the Thin Blue Vertical Lines, then note the Candle Colours & the CCI Indicator movements…..

Same with the Exit Signals, Red Triangles & the Red Dotted Vertical Lines, then note the Candle Colours & the CCI Indicator movements…..


The Triangle code is Blue B, P or K = Buy, ….. Red S, P or K = Sell….

The Blue B = Buy, the Blue P = Piercing Candle Formation Signal, the Blue K = Kicking Candle Formation,

The Red S = Sell, the Red P = Piercing Candle Formation Signal, the Red K = Kicking Candle Formation…..

Explanation Snapshots of those above Blue & Red codes is below….
View attachment 156619


Been 3 reasonable trades since early Feb 23, could there be another one starting today…. Or should we wait for tomorrows TA B4 a decision is made…. Your Call.....

This mornings Chart is below…..
View attachment 156620

Again it’s a bit slow t’day, tomorrow will probably be the same, so I have to do something, may as well bore everyone to tears with some Educational ‘bits n pieces’….

REMEMBER THAT THIS TYPE OF TA WORKS FOR ME, IT MAY NOT SUIT YOUR NEEDS, SO DYOR….

Cheers...
DrB.
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4/5/23 12.30pm - Any Takers would be well in profit by now, SVW was $23.01 at the time of my above post, now at $23.36 you are 0.35c up, so on a $20,000 trade = abt 860 shares @ 0.35c = abt $300 profit so far......
See it's not that difficult is it....
Watch out for those Overhead Resistance Lines....
 
DrBourse said:
4/5/23 12.30pm - Any Takers would be well in profit by now, SVW was $23.01 at the time of my above post, now at $23.36 you are 0.35c up, so on a $20,000 trade = abt 860 shares @ 0.35c = abt $300 profit so far......
See it's not that difficult is it....
Watch out for those Overhead Resistance Lines....
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I checked up SVW is+$37 .
@DrBourse I should have actioned then.
What's next prediction ?
 
was buying them in 2015 , ( under $6 ) grabbed some SVWPA ( their preference shares ) when they were being beaten up ( which then converted into SVW eventually )

have done nicely with these thank you Mr. Stokes

i also note SVW ( via Wroxby ) has increased it's stake in BCI recently
 
divs4ever said:
was buying them in 2015 , ( under $6 ) grabbed some SVWPA ( their preference shares ) when they were being beaten up ( which then converted into SVW eventually )

have done nicely with these thank you Mr. Stokes

i also note SVW ( via Wroxby ) has increased it's stake in BCI recently
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Yes. SVW has invested about $300 M on BCI and it is below the CR price. With the help of media, BCI is able to pump its price before they pump sea water to produce salt and Potash.
Recently one group is recommending SVW so I Waa curious how far it can really go at its current price.
 
SGH DELIVERS STRONG HY24 EARNINGS & GUIDANCE UPGRADE

Seven Group Holdings (ASX:SVW)
• Revenue1 of $5,386m, up 17%
• EBIT of $764m, up 28%
• Industrial Services Segment EBIT of $698m, up 40%
• WesTrac EBIT of $333m, up 31% • Coates EBIT of $164m, up 10%
• Boral EBIT of $201m, up 111% • NPAT of $474m, up 31%
• Adjusted Net Debt/EBITDA (leverage) sub-2x at 1.9x
• Operating cash flow of $715m, up 25%
• Interim dividend of 23 cents per share, fully franked
• Group guidance upgraded to “Mid to high-teen EBIT growth in FY24” 1
All references to financial metrics are on an underlying basis unless stated otherwise.

Seven Group Holdings (SGH) today reported a strong financial result for the six months ended 31 December 2023 (HY24), achieved through outperformance of its Industrial Services segment.
Group revenue of $5.4b was up 17%, driven by customer activity and demand across the core sector exposures of mining production, infrastructure & construction, and transitional energy.
The Group’s focus on cost management and operating discipline saw revenue growth amplified in earnings with EBITDA of $1,017m and EBIT of $764m up 21% and 28%, respectively.
Underlying NPAT of $474m was up 31%, while statutory NPAT of $225m was down 36%.
The difference predominantly relates to the Group’s share of Beach Energy’s Cooper basin and exploration impairments, and a mark-to-market impairment of Seven West Media (SWM) interests.
The Group’s operating cash flow of $715m was up 25%, despite a reduction in EBITDA cash conversion to 70%.
The cash conversion was impacted by parts and machines inventory investment at WesTrac, necessary to support strong customer demand across both WA and NSW.
Underlying earnings per share (EPS) from continuing operations for the year was 119 cents, up 27%.
SGH delivered an 80% total shareholder return (TSR) in the 12 months to 31 December 2023, the second highest in the S&P/ASX100.
The Group has now achieved top decile TSR results over 1, 5 and 10-year horizons, highlighting the core plus nature of the business. Ryan Stokes, MD and CEO said: “SGH delivered a strong result for the first half of FY24 with EBIT up 28%.
The result outperformed the Group’s 22% average EBIT growth rate since FY16, demonstrating our focus on disciplined execution and the quality of our businesses.”
“The result was again led by outperformance in the Industrial Services segment of WesTrac, Coates and Boral, with a combined EBIT growth of 40%. Our businesses are among the top industrials in the country, and the result is a testament to the outstanding work of our people and their dedication to serving customers.”
“The revenue growth of 17% to $5.4b, and EBIT growth of 28% to $764m is a record HY result for the business.
Operating leverage remains a key focus, and it was pleasing to see all our Industrial businesses 2 deliver margin expansion through strategic pricing and rigorous focus on overhead costs.”
“SGH continues to demonstrate the highly cash-generative nature of our business.
The 25% increase in operating cash flow supported an 8% reduction in net debt, and a 15% reduction in leverage to 1.9x.”
“SGH has delivered another top decile TSR result for our shareholders.
The TSR result highlights an increasing market appreciation for SGH’s ability to consistently deliver value accretive growth.”
“In addition to the record financial result, we have achieved improvements in safety, with a 48% improvement in TRIFR to 4.5, and 47% improvement in LTIFR to 1.3, compared with this time last year.
Safety remains a top priority for SGH and there is still more work to do to improve our safety performance.”

i hold SVW ( 'free-carried' )

not all beer and skittles , i note a $249 million write-down/impact am still looking for what that detractor is
 
Another snippet from the Market Index Evening Wrap

I wanted to end with my favourite chart from today, a text book example of my trend following strategy. It's probably the stock which has featured most consistently over the past 12-months in the daily shortlists I regularly publish to X.

Nothing goes up in a straight line, and wobbles in October and January might have triggered some shorter-term traders to take profits. But, the long term trend (dark green ribbon) has never been seriously challenged since it began back in January 2023.

Today's gap and run, and strong demand-side candle, confirms there's still plenty of excess demand in the system for SVW. Today's volume spike indicates likely supply removal (i.e., getting rid of any deadwood supply which don't believe SVW is destined for higher prices). This is important, because it means there's less supply to get in the way of the motivated demand which is so clearly evident in the trends, price action and candles.

Seven Group Holdings Ltd (ASX: SVW)​

Seven_Group_Holdings_ASX-SVW.png

Another fine example of technical analysis in action!​

 
Good morning?

Seven Group Holdings Limited (SGH) is an Australian diversified operating and investment group with businesses and investments in industrial services, media, and energy. The principal activities of the Group are those of a diversified operating and investment group; with interests in heavy equipment sales and service, equipment hire, construction materials, media, broadcasting, and energy assets.
Seven Group (SVW), a current holding within the momentum component of the ASX Growth portfolio, this morning has reported first-half results, with shares rising as investors react positively to upgraded guidance.
The results for the half-year reflect a robust performance across SVW’s diverse portfolio. The company reported a net income of A$188.9 million, a fall of 41% compared to the previous year's A$319.6 million driven by impairments in the groups exposure to Beach Energy as well as a decrease in the value of its stake in Seven West Media. Despite this, the underlying profit exhibited a notable increase of 27% year-on-year, amounting to A$433.1 million.
The revenue was also a positive note, rising by 17% to A$5.39 billion above estimates of $5.022 billion. This increase underscores the strength of Seven Group's core businesses, particularly in the Industrial Services sector, including WesTrac, Coates, and Boral, which have been pivotal in driving the results. These subsidiaries have outperformed expectations, contributing to the group's decision to upgrade its EBIT growth forecast for FY24 to a mid to high-teens range, with a specific guidance uplift for the Industrial Services segment to anticipate 20 - 25% EBIT growth. EBIT itself saw a solid rise of 28% to A$764 million highlighting SVW’s operation success. The interim dividend was maintained at $0.23.
Overall, the results are positive and understandably the market is reacting well with shares up 6.02% compared to a -1.3% fall in the broader ASX200. As the company looks ahead, its upgraded guidance and strong half-year performance point to a positive outlook for FY24, underpinned by strategic initiatives across its core business segments. As a reminder, SVW’s inclusion in the ASX Growth portfolio is based on share price momentum and given the gains today it would be incredibly unlikely for the stock to be removed at tomorrow’s rebalance.


https://assets.cmcmarkets.com/legal...TB_Investment_Portfolios_Subscription_TOS.pdf
 
from Livewire


A lot has been written about blows to living standards on the heels of the sharp rise in interest rates and inflation over the past few years. The Reserve Bank of Australia has termed what many Australians are enduring as a “painful squeeze.” Adapting has meant cutting back on things once taken for granted, to stretch pay-packets. Few, if any, can escape the clutches of inflation and interest rates, including corporate Australia.

Businesses are grappling with higher labour, energy, and transport costs. Like households, they too are being impacted by rising rents and interest payments.

So, how are the country’s listed companies faring? Recent profit results reveal an intriguing, even encouraging picture, at least from what we would term “quality” companies.

By “quality”, we mean companies with records of strong return-on-equity and profitability, unthreatening debt levels, good interest cover, and management teams that have demonstrated the ability to manage costs effectively and implement productivity boosting plans across operations. Brambles Limited , Seven Group Holdings Limited and Metcash Limited are examples of what we regard as quality companies that have, up to now, succeeded in doing more with less by bending cost curves and improving margins.
Despite plentiful speculation over when Australian and global interest rates may be cut, we don’t expect to see cuts any time soon, and certainly not rapid-fire cuts when they do eventuate. That being the case, companies will need to keep doing more with less for some time yet.
The days of bullish top-line, or revenue growth, are likely to be some time away.
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Seven Group’s (ASX: SVW) multi-business model delivering​

There was a time when Seven was just associated with the media industry – television and newspapers.
However, it has progressively changed and grown to become a diversified, multi-industry company through ownership of industrial services companies like WesTrac and Coates, and energy through a sizeable shareholding in Beach Energy (ASX: BPT) as well as other energy assets in Australia and the United States.

Seven is also a major player in Australia’s building materials industry through its majority ownership of Boral (ASX: BLD) . In February, Seven offered to buy the rest of Boral, a powerful endorsement, we believe, of the ongoing turnaround under the CEO appointed in December 2022.

At a group level, Seven reported a 28% rise in earnings before interest and tax on the back of a more than 20% lift in margins, and a 25% rise in operating cashflow that translated to a heady 31% gain in net profit after tax, for the half-year 2024.

The numbers tell a tale of a well-run operation, in our view. As good as the numbers are, it’s what happened at companies in the Seven stable that especially interest us.

WesTrac, at its core, is an authorised dealer of Caterpillar construction, mining, and engineering equipment. It also services the equipment, which provides recurring income. The beauty of WesTrac is that its earnings are linked to mining production volumes, not commodity prices.
Commodity prices are volatile and the share prices of many mining companies reflect this as it means that margins can fluctuate significantly.
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WesTrac, as an equipment provider and servicer, makes money irrespective of commodity price direction as evidenced by reporting a 31% rise in in its half-year 2024 results. While iron ore prices have softened over the past year, iron ore export sales volumes have continued to be both stable and high (), which is positive for WesTrac.

Chart : Iron ore sales volumes have been stable, benefiting WesTrac
Untitled.png

Source: WA Department of Mines, Industry Regulation and Safety, Resources Data Files (Bi-Annual); and WA Government. Mid-year Financial Projections Statement 2023-24 (December 2023)

Key phrases related to WestTrax, from Seven’s half-yearly results announcement, included “cost and efficiency initiatives delivering margin improvement; margin growth, cost discipline……”

Coates’ industrial services business also reported similarly impressive metrics with a 28% EBIT margin and asset utilisation 60% above performance benchmark, again owing to “improving operating leverage and yield driven by pricing and cost discipline.”

Investment industry people are familiar with the line, “past performance is not a reliable indicator of future performance” and so while companies like Coates may gain kudos for good, reported results, investors lookout for what the future may hold.
On that score the company had encouraging news for its shareholders with a $1.7 trillion infrastructure and construction pipeline and a “dominant and growing market share of Tier-1 infrastructure and construction customers.”
Boral, the largest holding within Seven, is still in the early days of its turnaround but the signs, so far, are encouraging, in our view.
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Led by Vik Bansal, a CEO with a formidable record of improving the financial and operating performance of companies he’s helmed, Boral is focused on “embedding the operating model to drive commercial, operational and financial rigour.”
The company’s industrial services arm reported a whopping 111% EBIT and 196% operating cashflows uplifts while managing to pull down overheads 6% attributable to strong cost management. All this was achieved even as sales volumes only went “marginally up.”
Talk about doing more, in fact much more, with the hand you’re dealt.
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Investors will have their fingers crossed for Brambles, Seven and Metcash over the rest of the financial year and beyond. Their recent performance has merited market participants’ support and continuing in the same vein by getting more from existing operations as well as value-accretive acquisitions will be important to future success
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SEVEN GROUP DECLARES 30CPS FY24 FINAL DIVIDEND

Seven Group Holdings (SGH, ASX:SVW) has today declared a final ordinary dividend of 30 cents per share fully franked.

The dividend reflects a 30 per cent increase on the prior comparative period, and results in total dividends payable on ordinary shares for the year ended 30 June 2024 of 53 cents per share.

The dividend is declared with an ex-dividend date of 19 August 2024 and will be paid to all shareholders of record as of 20 August 2024 on 2 September 2024.
This 30 cents per share fully franked FY24 Final Dividend satisfies the commitment made by SGH to pay a post-transaction dividend, as per section 4.2 of the 4th Bidder’s Statement,announced to market on 12 April 2024.

This release has been authorised to be given to the ASX by the SGH Board.


i hold SVW
 
System said:
On November 18th, 2024, Seven Group Holdings Limited (SVW) changed its name and ASX code to SGH Limited (SGH).
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yes , nearly gave me a freaking heart-attack when i looked at that portfolio and saw the big value gain this morning ( and was initially confused , in case it was an error in the system )
 
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