Key message: 2H FY21 looks to have recovered well after a Covid-impacted 1H. Apart from normalised SANRAL work, Raubex is growing its infrastructure and general contracting order book.
- Raubex released a Trading Update for FY21 (to end-Feb 2021).
- HEPS is expected to be 45-65% lower after the impact of the Covid-lockdowns in 1H FY21.
- 2H FY21 saw a recovery with all divisions returning to profitability. The HEPS guidance indicates 2H FY21 HEPS of 75-110c (roughly in line with 2H FY20).
- Raubex has secured an EPC contract for the Beitbridge Border Post Project in Zimbabwe, with work already underway.
- Raubex has successfully secured a number of significant SANRAL contracts and this has returned the group to normalised SANRAL work again after a long delay on contract awards.
- We maintain our Target Price and recommendation.