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.

Yes excelent results but no doubt we will have the post results sell off due to traders getting in before the results.

cheers GF.

You're right GF.

MS

Anyway CityWire like the results................

Everything shipshape at Hamworthy

Published: 15:22 Tuesday 31 May 2005
By: Cliff Feltham, Companies Correspondent

Britains shipbuilding industry has all but vanished but there are still useful profits to be made from supplying some of the essential systems used at sea.

Shares in Hamworthy (HMY) have more than doubled since last July's float on the back of growing demand for systems to handle fluids such as waste and liquefied gas at sea. Tankers, cruise ships and offshore oil and gas facilities all need its products.

Sales in the 12 months to end March increased by more than 25% to 113.9 million generating pre-tax profits of 6.4 million, a rise of 52%. The shares were steady at 229p valuing the firm at 85 million. They were floated at 109p. There is a final dividend of 3.2p.

Another good year seems to beckon with the order book standing at 121 million of which half the work is due to be delivered in the current year. The highlight of the year was winning orders worth 48 million from shipbuilders Daewoo, Hyundai and Samsung for liquid natural gas reliquefaction systems in the Far East.

The system allows gas which boils off during transportation to be recycled. The group is looking at other possible applications for its technology.

Back To Latest News Printable Version

Related Articles
The CFDealer: liquid natural gas fuels hot opportunities:
16:16 Thu 24 March 2005 read
Hamworthy wins big in Korea:
12:41 Fri 10 December 2004 read



Related Articles
New boy Hamworthy is cooking on gas:
11:06 Mon 22 November 2004 read
Dodd backs newly floated Hamworthy:
07:48 Mon 09 August 2004 read



Inert gas systems saw sales climb sharply. They are supplied to both gas ships and tankers with both sectors enjoying strong conditions.

Pump systems suffered a slight fall in operating profits reflecting reduced business for spares and service work. But there are hopes the wastewater system division targeting the cruise ship sector will see a pick up with a number of new vessels entering service.

The business, based at Poole in Dorset, provides advanced environmentally friendly ways of dealing with waste products on ships. Cruise ship operators are facing tighter environmental regulations governing the discharge of waste at sea.

Up until now the group has focused on organic growth but chief executive Kelvyn Derrick is signalling 'selective' acquisitions.

Citywire Verdict:
Hamworthy has delivered a good, solid performance after its first year on the market. The company is a either a market leader or has a dominating presence in most of the areas it serves. Over 80% of its sales are related to the production and transportation of oil and gas by tankers and gas ships. Expect moves to reduce this reliance probably through acquisitions. The shares still look good value.

cheers GF.

citywire recommends again:
".... Another alternative energy source is liquid natural gas (LNG) which is a methane gas cooled to minus 260F. Since LNG is a natural gas, it burns clean and is environmentally friendly. At the moment LNG makes up only 6% of the worlds natural gas trade but is expected to grow on average 6.7% per year.

A stock that offers an indirect exposure to LNG is Hamworthy . This was mentioned as a trading idea on 10 February at 198p, the shares are now trading at a mid price of 235.5p, an increase of 18%. The company designs and makes LNG handling systems for tankers and has a healthy order book worth about 130 million. This stock is well worth keeping an eye on and should the shares slip below 230p it might be worth considering a top-up on existing long positions.ENDS.


Well worth going back to this view from Citwire, as the post results sell off as certainly been overdone.

cheers GF.

Overdone indeed. Quite amazing how this sort of sell off exposes the power of the BORSON brigade. There must be a lot of people paying high tax/commission percentages for this short-termism. And this with one of the safer bets around. At this bargain price I'd certainly top up if I had funds.

Cheers, Madison

Certainly getting buyers coming back into the market for these.

cheers GF.

I agree...Selling way overdone, but as most of you, i think this is a stock to put away for the longrun...Being the leader in on-board reliquefaction plants for LNG ships is what interests me most about HMY, and this industry is just starting to develop. HMY has huge potential IMO.

Indeed it has huge potential and is derd cheap at the moment. Historical P/E of 15 and forward P/E of circa 10 makes this one a must for everyones portfolio.

cheers GF.

Tipped in Pat Lay's Small Caps (This Is Money)today.

Cheers, Madison

Topped up this morning.

Looks promising if Pat Lay is tipping it.

cheers GF.

Holding steady now ready for the next run up.

cheers GF.

RE- tipped in Shares today..................

Updates:
*Buy Hamworthy (HMY.L), Findel (FDL.L) and Retail Decisions

cheers GF.

Hamworthy is also mentioned today in Investors Chronicle "AIM 1000".
"From the 20 companies within Aim's general engineering sector, three - Hamworthy, Pursuit Dynamics and Offshore Hydro Carbon Mapping, stand out"

Yes thanks for that Paul.

cheers GF.

good to see an investors chronicle tip, can't do us any harm!!!

Shell announced yesterday that "it will transform itself into a global gas major over the next 10 years, producing more natural gas than crude oil, as it ramps up investment in a total of 10 multi-billion dollar projects".

Just reinforces how much opportunity there is out there for HMY.

Yep, and one day the share price will reflect that. In the meantime I could get bored waiting.

nice to see this up - good for the long run, but good to see a short term 5% rise too. Any news?

Sudden rise in volumes and SP has been happening for a few days - odds on something happening behind the scenes but I don't know what.