Industrea
Industrea (ASX:IDL) comprises a group of companies primarily involved in the provision of mining products & services, with diversified revenue streams arising from construction, asset management and engineering services.
The group’s products and services are sold on a wide geographical footprint that includes Australia, USA, South America, Indonesia, Papua New Guinea and China. Major customers based in these areas include BHP Billiton (ASX:BHP), Anglo Coal, Rio Tinto (ASX:RIO), Boeing and the major Chinese mining clients including Jincheng, Shanxi and Shenhua.
Industrea is constantly expanding its range of products and services to suit our client’s needs. The current range of mining products includes but is not limited to: Collision Avoidance Systems, Underground Directional Drilling; Aboveground Directional Drilling; Contractor Management and Mobile Asset Tracking.
Industrea has provided updated FY09 guidance of $335-350m revenue and $55-60m adjusted Net Profit After Tax. A significant proportion of this revenue (85%) is already secured for the fiscal year.
Alot of upside in Industrea - Chairman at AGM
At the Industrea Annual General Meeting, Chairman Hon. David P Beddall said, "I can assure you there is no downturn in the demand in China for Industrea’s (ASX:IDL) mining equipment. Industrea business has announced $55m of new contracts to supply equipment the China Coal Industry since June. It is worth remembering that IDL’s business in China is to supply equipment to enhance productivity and safety of the Chinese Coal Industry, Industrea does not sell commodities to China. We are seeing no slow down in enquires for equipment in fact the opposite is true."
The Industrea Chairman continued, "Industrea Ltd remains bullish on the outlook for its products in the international market. All IDL’s products have a dual purpose. They provide both productivity and safety. In the current international market with slower demand the major miners are looking to cut costs and increase productivity, Industrea equipment is well placed to help them achieve both outcomes.
Industrea’s client base includes: BHP Billiton (ASX:BHP), Anglo American, Xstrata (LSE:XTA), Vale (NYSE:RIO) and Shenhua Energy Company of China.
China
Hon David Beddall said, "I have already stressed the importance IDL puts on China but is worthwhile adding some additional insights. China’s demand for energy continues at an unsubdued pace. China continues to commission a new coal fired power station the size of Tarong Qld each and every week. Demand for coal expands to meet this need. The average coal miner in China produces 400 tonnes per annum.
The Australian equivalent is 12,600 tonnes per miner. The sale of IDL’s equipment is assisting China’s large coalmining companies to raise productivity and also help these companies achieve higher safety standards. The Chinese Government is placing increasing emphasis on mine safety in order to reduce the human toll of mine accident which this year will officially total approximately 4000."
2009 Profit Outlook Unchanged
At the AGM, the Chairman re-affirmed Industrea’s forecasts of revenue of $330 to $355m for the year ending 30 June 2009 with an adjusted net profit of between $55 to 60 million. "IDL is confident of meeting these forecasts despite the difficult international climate. The Board of Industrea is not being overly optimistic but is confident with the current order book; including long term integrated mining services contracts, representing 75% of forecast revenue for FY09. Also as we continue to receive orders for our mining equipment we are now building the order book for the FY2010."
"Industrea is trading now on a P/E ratio of just above four. When markets return to normal there is a lot of upside in the Industrea shareprice."