While 1H19 EBIT(A) of $7.3m was below our $8.7m expectation, the maintained full year forecast for >$400m revenue means most of the gap will be made up the second half. Our FY19 EBIT(A) forecast has been trimmed slightly, but we make little change to longer term numbers. Importantly, SXE has significantly changed its scale and diversity in recent years, which helps improve earnings visibility and manage risks. Delays are our key concern in the sector at present, but we like SXE’s prospects and keep a BUY call on a $0.85 valuation.
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