WTP - Watpac Limited

[pan]

Watpac is a construction company focused on building construction, refurbishment and property development.

They have many projects in NSW, Victoria and QLD, they also have overseas projects in Vietnam.

WTP's cilents include government, develops and investors.

There are many broker evaluations available on the website.

http://www.watpac.com.au/

 

[jersey10]

Watpac is a construction company focused on building construction, refurbishment and property development.

They have many projects in NSW, Victoria and QLD, they also have overseas projects in Vietnam.

WTP's cilents include government, develops and investors.

There are many broker evaluations available on the website.

http://www.watpac.com.au/

so, you think they are good company? where do you see their share price 1 year from today? attractive P/E ratio and dividend, but perhaps not in the right sector for capital growth at the moment?

 

[Muschu]

Announcement of July 7 said, in part:
"Mr Seymour confirmed that company policy of distributing dividends to shareholders will continue in line with most recent payout ratios."

It is the word ratios that interests me. The SP has halved since the last dividend in February. Is it fair to assume that, if the ratio is maintained, the dividend will also halve?

I do not hold WTP.

 

[michael_selway]

Announcement of July 7 said, in part:
"Mr Seymour confirmed that company policy of distributing dividends to shareholders will continue in line with most recent payout ratios."

It is the word ratios that interests me. The SP has halved since the last dividend in February. Is it fair to assume that, if the ratio is maintained, the dividend will also halve?

I do not hold WTP.

Hi good thinking, so yield might not be as good as it seems!

Business Description
Watpac Ltd (WTP) is a Queensland based construction company focused on building construction, refurbishment and property development. Clients include local, state and federal governments, private developers and investors. Projects range from, sporting complexes, hospitals, universities, residential housing and shopping centres.

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 27.0 34.1 39.2 39.3
DPS 18.0 21.5 24.5 26.0

thx

MS

 

[Muschu]

Thanks for the comment Michael - Value your experience. If they did pay a 10% FF dividend it would be impressive. Maybe their announcement about meeting targets will induce them to, but who knows?
Might sit on the proverbial fence.
Thanks
Rick

 

[zolow]

These guys might stand a chance a benefitting from the recently announced govt infrastructure spend in NSW and Vic etc.

Infrastructure spending is suppossed to be the upcoming thing. They could be an interesting look, provided they can pick-up some of the upcoming govt tenders on offer.

-- DNH

Z

 

[pan]

so, you think they are good company? where do you see their share price 1 year from today? attractive P/E ratio and dividend, but perhaps not in the right sector for capital growth at the moment?

It is the word ratios that interests me. The SP has halved since the last dividend in February. Is it fair to assume that, if the ratio is maintained, the dividend will also halve?

I do not hold WTP.

I personality don't hold yet either but the company was brought to my attention from a friend.. I think where it goes in the next 12 months depends on the economy... Things like building approvals could have mixed results towards the performance and the government building funds could also bring added revenue..

 

[michael_selway]

I personality don't hold yet either but the company was brought to my attention from a friend.. I think where it goes in the next 12 months depends on the economy... Things like building approvals could have mixed results towards the performance and the government building funds could also bring added revenue..

Hm PAN, when you wrote the first post in this thread, it was the best time to buy (in hindsight)!

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 32.9 32.8 33.4 34.3
DPS 22.0 22.0 23.0 23.0

Date: 6/8/2008
Author: Lisa Allen
Source: The Australian Financial Review --- Page: 66
After the discovery of radioactive material at a potential studio site, the ABChas negotiated with Watpac. The Brisbane development was going to replace theformer Toowong studios, where 16 employees were diagnosed with cancer. The ABCwanted to abandon the $A15.43 million contract with builder Watpac after theradioactive material was found. Watpac initially sought damages but announcedthe abandonment of court action on 5 August 2008, recognising the ABC'ssensitivity to contaminated land. Watpac will construct the Ross Street Precinctdevelopment on the Newstead site. Meanwhile, Watpac has acquired JMF, a miningand civil engineering business

 

[blinkau]

Would like to hear peoples thoughts on the below.

(based on information before share purchase plan)
In the fin year that just passed the company recorded $11m NPAT, eps of 9.45c and ROE of 5% ($36m npat if you exclude write downs, eps 30c, roe 17%) the company paid a dividend of 10.5c per share. The market cap at the time roughly based on $1.15 share price was around $140m.

What I am curious about is considering the NTA is $1.53 ($212m equity on the balance sheet) and you may in future years expect if there is no further write down a ROE of around 15% why would the share price have traded under the net tangible assets? It was a tough time in 2008 but I thought it would have been worth more considering it should be worth more in the future once the market returns to a more resonable level.

If you exclude the write downs it traded on a PE of 3.5x or 11x adding in write downs. Any ideas? I know the margins in the business seem slim with a NPAT of $11m based on near $1bn in sales been 1% but I thought it would be worth more then its currently trading at?

 

[bloomy88]

gday blink,
could you give a quick rundown of the company? Why do you think they should be worth more than they are at the moment? Are they likely to have EPS growth this year?
cheers

 

[skip9]

Bump this thread.
Does anybody think they can get to where they once were. Seem to be a solid company that are recovering?

 

[Moneybags]

Not sure if they can get to their highs in the short term......the div is quite attractive tho and I'm up about 15% in the short time I've been in. I'm hoping for above $2 by years end.

Looks to be a good solid company and I suspect the growth potential to be significant over the coming years. Recent ann was positive with 200mil of contacts won.

Good luck.

MB

 

[russia2]

what happened to this stock on friday a very very good rise. Rose over 15%. is there something we dont know about?

 

[odds-on]

Has anybody been following Watpac over the last 12 months? The management address at the AGM reminded me of Winston Churchill's "we shall fight them on the beaches" speech. Inspirational stuff!

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01355368

Serious question - will the next report show a return to profitability? Surely there cannot be anymore cockroaches left in the kitchen.

Cheers

Oddson

 

[Liar's Poker]

WTP in trading halt.

Looks like they might have finally picked up the $200m office tower project in Brisbane. WTP had done the early works on this one prior to major works tender.

Note: holding long position.

Liar.

 

[notting]

It 's pretty wierd reasond for a 2 day trading holt.

 

[qldfrog]

indeed, I had a buy which did not go thru the morning of the trading halt: have I been lucky or unlucky????

 

[odds-on]

Belgian construction group to purchase a 15.6% stake in Watpac.

http://www.smh.com.au/business/property/seymour-sells-stake-in-watpac-20130409-2hiru.html

Good news? Bad news?

 

[tinhat]

This company has come up on my scans so I will research further over the weekend if I get time. Any opinions on this company? Looking back over its earnings it obviously saw some good times during the noughties but as with construction and development, its earnings have been more lumpy in recent times. Dividend yield falling. Hopefully the margin squeeze in construction is on the wane?

 

[skc]

This company has come up on my scans so I will research further over the weekend if I get time. Any opinions on this company? Looking back over its earnings it obviously saw some good times during the noughties but as with construction and development, its earnings have been more lumpy in recent times. Dividend yield falling. Hopefully the margin squeeze in construction is on the wane?

If mining activities begin to ease, there will be increased competition and squeeze in other parts of the engineering world like civil construction. WTP is QLD based (I think) and the State Government there isn't opening up the purse strings any time soon.

Margins are actually still high by historical standands (for those companies that are consistently profitable).

One issue with WTP is that it is a small operator - so one project screw up can have major impact on the bottom line. The reverse is also true of course. But from a risk point of view, if you want exposure to the sector but minimise individual project risks, WTP may not be the perfect candidate.