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AEG's balance sheet is still pretty chunky from all those writedowns a few years back, hard to see where the multiple expansion comes from at R4.26. But the civils pipeline is actually decent if you believe the order book numbers, which is a big if after Murray & Roberts kept disappointing. I'll wait for two quarters of actual cash generation before getting excited.
AEG sitting at R4.26 is a joke for a construction group with that order book. Been beaten down too hard on the load-shedding fear but infrastructure spend isn't going anywhere. If they can get one decent contract win this could run hard, reckon R150 minimum within 12 months mark it.
AEG closing at R4.26 is pretty weak tbh, order book pressure is real when you're tied to infrastructure spend and load-shedding is killing project timelines. Compare to Murray & Roberts and you see the same pain, civils guys just getting squeezed right now. Might be a hold and wait story rather than a buy unless they get some big SENS announcements on new contracts.
Look, AEG got absolutely hammered but the construction recovery is real, you just gotta have patience. These guys are bidding on proper contracts again and the balance sheet cleanup is happening, can't ignore that. Compare them to where Murray & Roberts was five years ago, same story. We are a pre-revenue company getting back to profitability, do you get where those companies are now.
AEG's balance sheet is still underwater from the construction downturn, but if load-shedding actually forces some infrastructure spend next year the civils division could surprise. Long-term view hasn't changed, just need the macro to cooperate. Rand weakness helps export margins too if they can land those African contracts.
worth noting aeg's order book actually held up better than i expected through the load-shedding chaos, fwiw. civils division still taking decent tenders even if margins compressed. at r4.15 the risk reward looks interesting if they can stabilize eskom-adjacent work over the next two years, could be wrong but construction plays tend to find their floor when nobody's looking at them anymore.
AEG up 3.39% to R4.27 today while Murray & Roberts sitting flat. Aveng's got better operational momentum this quarter and the debt reduction story is starting to stick with the market, unlike M&R which keeps getting hammered on execution fears.
AEG sitting at R4.26 is laughable for a contractor with actual order books. Problem is the market has zero confidence in management executing, and fair enough given the last few years. If they can just not blow up the Eskom contracts they've landed, there's real money here, but that's a pretty low bar these days innit.
Worth noting AEG's order book sits around R12bn which is solid for a mid-cap construction play, but the real test is converting that into actual earnings with load-shedding and material costs still all over the place. fwiw the group's been trimming fat in the non-core bits which should help margins longer term, just need to see it flow through to the bottom line. Civil work is where they make real money so keeping that segment firing matters more than chasing every contract out there.
aeg sitting at r4.26, construction stocks getting hammered but civil work pipeline still there. problem is margins getting squeezed, debt's chunky. ngl if load-shedding sorts itself maybe there's upside but that's a big if.
aveng's been getting hammered but construction plays always bounce back when infrastructure picks up. the debt situation is real though, can't ignore that. r4.26 is closer to fair value than it was at 8 rand but need to see some actual wins on the bid front before i get excited again.
well looky look, aeg sitting at r4.26 and the construction space is still a mess but at least the group's got civil work coming through. ngl the balance sheet's been chopped but if they can land some of those big infra tenders without load-shedding killing margins it could actually move. long game is solid if they don't blow cash on dumb stuff.
Pulled the latest results. Construction pipeline looking solid, patience pays here.
AEG's been battered by load-shedding impact on construction schedules and input costs eating margins. Thing is, the order book is still solid and once SA power stabilises even slightly this should see some daylight. Long-term view hasn't changed, infrastructure spend isn't going anywhere. At R4.26 there's value if you can stomach the volatility.
AEG's order book is still decent but margins are getting squeezed hard on these projects. At R4.17 the market's pricing in a fair bit of pain, ngl. If they can actually deliver on the infrastructure contracts without blowing costs then maybe there's something here, but the balance sheet needs to stop leaking cash first.
AEG balance sheet is getting thin, debt sitting heavy on the construction side. guys jumping ship because the order book isn't there to justify holding through load-shedding delays. compare to Basil Read back in the day, same pattern, same end. unless they land some real contracts soon this keeps grinding lower.
Current R 4,19 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.