SXE’s 1H18 revenue was broadly in-line with our forecast, although costs were higher than expected resulting in softer than anticipated earnings. The substantially increased revenue highlights the transformational nature of the Heyday acquisition. SXE now operates in the key growth areas of commercial and infrastructure construction, whilst maintaining its presence in resources (which should be seeing increased capex in coming years). Despite an unchanged positive view on SXE’s future growth potential, limited upside to our $0.80 valuation causes us to maintain a hold recommendation.
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