Macmahon Holdings Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Macmahon Holdings Limited (ASX: MAH) is engaged in the provisioning of surface mining, underground mining, and mining support services to companies across Australia and Southeast Asia.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~60.61% of the total shareholding. Amman Mineral Contractors (Singapore) Pte. Ltd. and Paradice Investment Management Pty. Ltd. hold a maximum stake in the company at ~44.27% and ~7.04%, respectively.

1.4 Key Metrics:

During FY22, the company recorded a current ratio of 1.25x against 1.24x in FY21. In addition, the company recorded accounts receivable turnover ratio of 6.3x in FY22 as compared to 6.1x in FY21. Below is captured the trend of the gross margin and asset turnover ratio:

Section 2: Financial Highlights and Strategic Priorities

2.1 Insights of FY22: During FY22, MAH achieved improvement in performance despite operational challenges across the broader mining industry. The company managed to build upon its track record of disciplined execution of its growth strategies.

2.2 Strategic Priorities: Below picture provides an overview of strategic priorities:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 02, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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