Company Reports

No-moat Australasian infrastructure services provider Ventia reported a 15% increase in first half 2024 NPAT to AUD 101 million, marginally beating our expectations. The market was apparently disappointed in the result, the shares down nearly 7% on the day. We increase our fair value estimate by 6% to AUD 4.50 and continue to view the shares as somewhat undervalued in 3-star territory.

Ventia is a leading infrastructure maintenance services provider in Australia and New Zealand. Through developing strategic relationships and a focus on safety, Ventia has built trust to deliver highly sensitive and complex projects across its sectors. Revenue has a visible stability with 70%-80% of Ventia’s next 12 months of revenue historically supported by work in hand. Work in hand as at July 2021 stood at AUD 15.5 billion.

No-moat Ventia has recently been awarded an AUD 100 million contract with NBN Co over three years and an AUD 150 million contract with Western Power over five years. These are Ventia’s first contract announcements this calendar year. Their combined AUD 250 million falls considerably short of the AUD 860 million and AUD 1.2 billion in wins announced by this time in 2023 and 2022, respectively.

Ventia is a leading infrastructure maintenance services provider in Australia and New Zealand. Through developing strategic relationships and a focus on safety, Ventia has built trust to deliver highly sensitive and complex projects across its sectors. Revenue has a visible stability with 70%-80% of Ventia’s next 12 months of revenue historically supported by work in hand. Work in hand as at July 2021 stood at AUD 15.5 billion.

Ventia keeps on delivering and we increase our fair value estimate by 6% to AUD 4.25. The Australasian infrastructure services provider increased its underlying 2023 net profit after tax by 17% to an above-guidance AUD 190 million or AUD 0.22 per share, slightly ahead of our AUD 0.21 estimate. The company declared a final AUD 0.09 dividend, bringing the full year to AUD 0.18 on an 82% payout. This was slightly ahead of our AUD 0.17 target and equates to a useful 5.1% yield at the current share price, franked to 80%.

Ventia is a leading infrastructure maintenance services provider in Australia and New Zealand. Through developing strategic relationships and a focus on safety, Ventia has built trust to deliver highly sensitive and complex projects across its sectors. Revenue has a visible stability with 70%-80% of Ventia’s next 12 months of revenue historically supported by work in hand. Work in hand as at July 2021 stood at AUD 15.5 billion.

Ventia is a leading infrastructure maintenance services provider in Australia and New Zealand. Through developing strategic relationships and a focus on safety, Ventia has built trust to deliver highly sensitive and complex projects across its sectors. Revenue has a visible stability with 70%-80% of Ventia’s next 12 months of revenue historically supported by work in hand. Work in hand as at July 2021 stood at AUD 15.5 billion.