“Perenti is a diversified mining services company,” Julia explains.
Having successfully completed the acquisition of Barminco, the company is targeting an underlying NPAT(A) for FY20 around $140 million, which compares to $103 million in the last financial year.
“Underground mining was the standout area in the last financial year.
“This is a company with a strong existing pipeline, improving operational efficiencies and visible growth over the next few years,” she states.
Adelaide Brighton (ABC) is a building product company that makes and distributes cement and cement products. “While residential house prices have been stabilising, building work still looks soft,” Julia says.
“The company expects residential construction activity to decline until 2021.
“New import competition in South Australia is making it tough for the company. Like many areas, Chinese product is cheaper and hence Adelaide Brighton has had to cut prices to combat competition from cheaper imports.
“With limited catalysts in the short to medium term, the weakness in its share price is likely to persist.
“A pick up in building construction would be a positive for this company,” she adds.
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