Brokers Hargreave Hale gave the following Valuation for HMY

VALUATION
The nearest comparisons to this Group are Sondex, trading on a current year multiple of 14 and Weir Group which typically trades on multiples of 12 plus. We would argue that Hamworthys prospects are brighter than both these companies in view of the strong order book and the global positioning. Fully taxed earnings of 13p this year and 16.5 p for the 2005/6 end March, suggests a current year PE of 9.9x and a prospective PE of 7.8x. There is a prospective yield in excess of 4%. If trading on a similar PER to Sondex the shares would be valued at in excess of 180p. We would argue that a premium to Sondex is justifiable, in particular because of the potential ramp up to sales as a result of the new product pipeline now gaining client acceptance in what is in any event one of the fastest growing markets in the world.

"Shares" Article relating to Hamworthy (HMY) posted below for info.

With a following wind these shares should double over the next year or so.

Some catty folk in the City say the flotation last month by Collins Stewart
could have been handled better, i.e. at a higher price. It was certainly over
subscribed but the rating is half that of similar oil sector service companies
including Sondex.

Looks like our prediction of 2 by Christmas is pretty much on the cards. GF you must be pretty chuffed with this one seeing how you bought at about the same time as me when they were 'cheap as chips'.

Happy Investing Everyone!

Yup certainly am and glad we have overcome the little worries one or two had on results.

Hoping they get this new contract.

cheers GF.

I've just topped up for the 3rd time and will continue to do so through to 300 plus!

Up again exper and moving nicely.

cheers GF.

What a great stock Hamworthy is. I've been watching this stock for about three months now and each day it seems to get better. A nice early Christmas present.

GF

You first put me on to this and what a cracker it's turning out to be. So many thanks I owe you a very large scotch.

PS. Got any more?

MS

I noticed this a few months ago in Shares or Inv Chron mag and kept an eye on it until i took the plunge beg Nov at 1.65p.

This is far outstripping my other 2 high risk stocks which I am loosing on.

Looking forward to the 200p mark.

Accord, I see this as a safe investment. Please let me know what the high risk element is? I may be missing something. Thanks.

Safe indeed expert. Harry Hindsight wishes he'd bought more! I came in with accord.
My high risk was SEY - bought on momentum at 20.5p and now you can have then for less than 16. What a mistake. Should be fine in the long term (famous last words) but for now the big red figure in the portfolio is far bigger than the nice blue one against HMY.

Pond Life

Cheers MS, looking for more from these especially if they get that contract.

cheers GF.

expert

Sorry to confuse you, but I meant that my other 2 stock are high risk and that Hamworthy isnt.

Hope this eases your fears on this stock.

It looks like some big institutional buy's are going through!

I hope this sails on through 2. Any thoughts.

MS

Well buys last time I looked were far bigger than sells but it didnt move north.

Perhaphs they had a hangover from friday.

cheers GF.

It looks like a foundation is being established for our next rise. This is going up nice and steadily without any ramping. I'm sleeping soundly nowadays.

Looking good.

GF.

Was due a rest.

cheers GF.

Hamworthy wins first LNG-RS orders with total value of 48m

Hamworthy plc, a world leader in the design and manufacture of innovative marine
and offshore fluid handling systems, has won orders and a letter of intent to
supply eight ships with liquid natural gas reliquefaction systems ('LNG-RS')
with an total estimated sales value of 48 million to Hamworthy. The orders are
from three different shipyards in Korea with a letter of intent to place an
order for four ship sets from Daewoo Shipbuilding & Marine Engineering Co.
(DSME), an order for two ship sets from Hyundai Heavy Industries Co. Limited
(HHI), and an order for two ship sets from Samsung Heavy Industries Limited
(SHI). The systems will be installed on the first ever slow speed diesel engine
LNG carriers, that are currently under construction and will be delivered to the
shipyards between April and August 2006.

In addition to the orders for the eight ships, Hamworthy has agreed options with
the three Korean shipbuilders to supply a further eleven ship sets of LNG-RS.
This includes six options from DSME, three from SHI and two from HHI with an
estimated sales value of 66 million over the next three years to Hamworthy.

LNG liquefies at minus 160 centigrade and reliquefaction is a process which
enables LNG cargo boil-off (evaporated LNG) to be reliquefied and returned to
the cargo during transportation. This enables a ship to be powered by more
efficient and lower maintenance cost slow speed diesel engines. Such diesel
powered units can provide ship owners with annual operating savings of up to
US$5 million per vessel. The present generation of LNG carriers burns boil-off
to produce steam to power a vessel.

The LNG carriers have been ordered by two separate joint ventures between
QatarGas Transport Co and German and US shipowners. This is a part of a wider
joint venture between ExxonMobil and Qatar Petroleum planning to bring LNG from
the Arabian Gulf to the United Kingdom. A total of eight LNG carriers have been
commissioned for this purpose with all eight being constructed at Korean
shipyards. They will be the world's largest LNG carriers at between 210,000 and
216,000 cubic metres (cbm) as well as representing a technological breakthrough
from previous steam powered vessels.

A new gas processing terminal is being built at Milford Haven, Pembrokeshire
where 15.6 million tonnes of LNG will be processed a year, producing two billion
cubic feet of gas a day when fully operational. Imports to Milford Haven will
commence in 2007, from where LNG will be distributed for domestic, commercial
and industrial use.

Kelvyn Derrick, Chief Executive, Hamworthy plc said: 'We are delighted that
years of work with the oil majors, notably ExxonMobil, and leading shipyards has
paid off. Much of our growth in recent years has derived from innovation and
this breakthrough means that this should continue into the future.

'Whilst the value of these orders is high, order intake in some other parts of
our business has been slower than previously expected. However, overall we are
pleased to confirm that on the basis of the positive impact of these prospective
orders, we expect our results for the current and next financial years to be in
line with market expectations.'


- Ends -

Sounds good to me.

MS

This article from another place back on the 2nd November has had me researching these guys - gives a very good overview and with todays news I have gone in big.

Looks to have a long way to go yet.

Hope it is of some use.

Buy Hamworthy at 171p
Rob Cullum of TrendWatch.co.uk
When you think of big, successful, world-class engineering companies, what springs into your mind? Germany, perhaps? Or maybe one of the giant Far East trading houses such as Hyundai, Mitsubishi or Hitachi. Despite our proud post-industrial revolution heritage, you don't normally think of engineering and Britain in the same breath, except perhaps for Rolls-Royce.

But we do have many world-class engineering businesses. One of them surprisingly only floated on AIM in July. Even more surprising, it's a business that the average person on that other engineering marvel, the Clapham omnibus, has probably never heard of.

The company is Hamworthy. Its speciality is marine engineering, with the emphasis on fluid handling. So, for example, it makes pumps and equipment for getting crude oil and natural gas onto and off tanker ships. It also makes systems for handling dry cargoes. It makes the refrigeration systems for liquid petroleum gas (LPG) and liquid natural gas (LNG) carriers. It's the world's leading manufacturer of marine sewerage treatment systems, fitted to ferries all the way up to the world's biggest cruise liners. It supplies specialised equipment to military naval fleets worldwide, where requirements in terms of reliability, shock resistance and fire resistance are especially onerous. It supplies equipment for all types of in offshore oil exploration, including seismic vessels, drill vessels involved ships, oil rigs, shuttle tankers and pipe-laying craft.



The company has major establishments in the UK, Norway, Denmark, Singapore and a modern assembly plant in China, which helps to keep its products highly competitive.

Given the recent flotation on AIM, it may come as a surprise that the company's history goes back nearly a century, to 1911. It was acquired by engineering conglomerate Powell Duffryn in 1962. Powell was the subject of a private equity takeover in 2000. Its owners refloated Hamworthy in July via a placing at 109p.

These days, you should never be put off by the fact that this is an AIM company. Many AIM companies are bigger than their fully listed brethren. Hamworthy is capitalised at 60 million pounds and rising. Its annual turnover has risen from 64 million pounds in 2002 to almost 100 million pounds now; pre-tax profit rose from 4.0 million pounds to 5.8 million pounds over the same period and in May its order book stood at a record 98 million pounds.

There are several drivers for this growth:

The ever-tightening environmental, safety and noise regulation. The days when ship operators could treat the sea with contempt as their private cesspit and waste oil dump have long gone.

The demand for oil and gas transportation is growing.

The market for cruise tourism is expanding.

There is a growing trend to utilise FPSOs (floating production, storage and offshore loading) vessels, which are full of the sort of equipment in which Hamworthy specialises.



Furthermore, thanks to the extreme conservatism of the marine industry, there are serious barriers to entry for would-be competitors. Given the potential for disaster at sea involving explosive cargos, it isn't surprising that Hamworthy's customers often require extensive lists of user references and evidence of years of successful operation before they'll even consider ordering a particular marine system.

Despite that fact, this is a fragmented industry, giving Hamworthy plenty of opportunities to grow via acquisitions as well as organically.

This combination of a long history, major growth drivers and barriers to entry has resulted in Hamworthy becoming the world's number 1 in deepwell pumps (for pumping gas and oil cargoes), with 95% of the global market. It's also no.1 in gas reliquefaction systems and in water treatment systems. It's the global no.2 or no.3 in most of the other products that it supplies.

Its new gas reliquefaction system could turn out to be a real winner. Exxon and Conoco are currently testing it. Some gas boils off from the LNG cargo during the voyage. Currently, liquid gas carriers use this boiled-off gas to power steam generators to power the vessel. This is actually an inefficient use of energy. Hamworthy has developed an on-board gas reliquefaction system, enabling the ships to use more efficient, low maintenance diesel engines. The reliquefaction system costs 2 million pounds - 5 million pounds but should save 3 million pounds p.a. for each LPG vessel.

We don't yet have the benefit of broker research for this company, though no doubt that will change quite quickly, given the attention the flotation attracted from institutional shareholders (the placing was oversubscribed). House broker Collins Stewart reckons that profits will rise from 5.8 million pounds to 7 million pounds this year and to 9 million in 2005-06. If correct, this puts the shares on a lowly p/e of under 7 for 2005-06. We'd expect to see a share like this rated at more like 12 at the very least.

It also suggests that the company was floated too cheaply. This is the earliest opportunity we've had to recommend the share, which has performed strongly since flotation. There's a window of opportunity here to pick up the share while they still look seriously underpriced. Don't delay too long, though. At the rate the shares are rising, the window won't be open that much longer. BUY

Key Data

EPIC: HMY
NMS 5,000
Spread 169p - 173p
Market Cap 62.16 million pounds