Adelaide Brighton Limited (ABC)
Views and News
A Leading Cement and Lime Producer Leveraged to Resources
Adelaide Brighton is a very reliable performer. It is a leading Australian integrated cement, construction materials and lime producing company with high exposure to the engineering, infrastructure and resource sectors.
Half-yearly Performance & Estimates - ABC
| Year-end December | FY11A | 1H12A | FY12A | 1H13A | FY13A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 1100 | 548.8 | 1,173 | 578.1 | 1,226 | 1,257 | 1,298 |
| EBITDA, $m | 281.2 | 98.5 | 290.9 | 123.9 | 293.3 | 299.1 | 312.2 |
| EBIT, $m | 223.4 | 98.5 | 225.7 | 89.6 | 222.7 | 225.0 | 237.0 |
| Report NPAT, $m | 148.4 | 67.5 | 154.2 | 60.9 | 151.1 | ||
| Adj. NPAT, $m | 151.1 | 152.5 | 162.9 | ||||
| Reported EPS, ¢ | 18.00 | 11.00 | 24.00 | 10.00 | 23.00 | ||
| Adjusted EPS, ¢ | 23.00 | 24.00 | 25.40 | ||||
| EPS %FY/Growth | 46% | 33% | 43% | -4% | 4% | 6% | |
| Dividend, ¢ | 16.5 | 7.5 | 16.5 | 7.5 | 19.5 | 19.90 | 19.75 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 25% | 18% | 25% | 21% | 24% | 23.8% | 24.1% |
| NPAT Margin | 13% | 12% | 13% | 11% | 12% | 12.1% | 12.6% |
| ROE, % | 15% | 7% | 15% | 6 | 14% | ||
| EBIT/Interest | 8.2 | 10.6 | 13.8 | 14.0 | 15.79 | ||
| Net Debt / Equity | 0.34 | 0.30 | 0.31 | 0.31 | 0.23 | ||
| CashFlow/Sh, ¢ | 24.4 | 12.6 | 29.3 | 14.0 | 35.6 | 32.6 | 35.9 |
| Y/E Shares, m | 636.9 | 637.4 | 637.4 | 637.4 | 638.5 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns except the first half years which show their percentage of full year EPS. In a handful of cases, unadjusted share splits, or changes between positive and negative values may give strange changes in ratios. |
Recent News Highlights
As at 31/12/2012 : see details at www.adbri.com.au (new window? Shift+Click)
| 07/12/2012 ABC re-enters S&P/ASX 100 Index on quarterly rebalancing, effective 22 December |
| 06/12/2012 Completes acquisition of 30% stake in Aalborg Portland Malaysia |
| 03/12/2012 Acquires 30% stake in Aalborg Portland Malaysia (APM), an integrated white clinker & white cement producer in Ipoh, for ~A$28.5m. |
Company Overview
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Adelaide Brighton has operations in all states and territories; 1,600 employees
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It is well positioned to supply cement to all mainland states from its domestic manufacturing base, coastal supply and import facilities
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Market leader in lime in Australia, and 9th largest producer on a world scale
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The second largest supplier of cement and clinker in Australia
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Market leader in concrete masonry products with an emerging position in aggregates and ready mixed concrete
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ABC is highly cash generative with low gearing and balance sheet capacity for organic and acquisitive growth
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Consistent strategy over the last decade has supported long term shareholder returns through a focus on Cost Reduction and Operational Improvement; Lime development; and focused and relevant Vertical Integration
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For Cement – A $60m investment to expand milling capacity at Birkenhead, SA, subject to planning approvals and finalisation of supply agreements, should provide annualised benefits of $10-$12m from mid 2013
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For Lime – The investment of $34m for two projects should bring environmental improvements and an additional 100,000 tonnes per annum capacity at Munster, WA
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Downstream acquisitions have continued - four acquisitions were made in 2011 totalling $47m at an effective cost of 7.3 times 2011 EBITDA.
Profile
Adelaide Brighton
Rating: ♣
Category: Best Stock ; Large
Action:
Website: www.adbri.com.au
| ASX code: | ABC |
| Closing Price, 20/06/14: | $ 3.380 |
| Market Capitalisation: | $ 2,165 million |
| 52 Week High: | $ 4.375 |
| 52 Week Low: | $ 3.108 |
| Sector: | Construction Materials |
| Index: | S&P/ASX 100 Index |
Summary of Fundamentals
| Year-end December | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 154.1 | 151.1 | 152.5 | 162.9 |
| Reported EPS, ¢ | 24.00 | 23.00 | ||
| Adjusted EPS, ¢ | 151.10 | 24.00 | 25.40 | |
| EPS Growth, % | 4% | 530% | -84% | 6% |
| P/E Ratio, x | 14.08 | 2.24 | 14.08 | 13.31 |
| Dividend, ¢ | 16.5 | 19.5 | 19.90 | 19.75 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 4.88 | 5.77 | 5.89 | 5.84 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 23 June 2014
Other Highlights
| Sector: | Construction Materials |
| Return on Equity, FY13 : | 14% |
| Net Debt to Equity, FY13 : | 23 % |
| EBIT / Interest Cover, FY13 : | 15.79 x |
| Gicscode: | 15102010 |
| First Listed: | 31-May-62 |
Business Activities
Adelaide Brighton Limited (ABC) is a leading supplier of cement and lime to the construction, engineering, infrastructure and resource sectors in Australia, operating in all mainland states.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |