Research notes

SKS recently pre-reported its FY26 headline metrics, the broader result today was mostly in line with our expectations, with the group delivering strong growth for FY26 with PBT +89% YoY. FY27 Guidance for ~53% PBT growth, remains strongly supported by current work in hand, and SKS’s further expanded tender pipeline (which now sits at $1.69bn). We remain optimistic that SKS remains well positioned to see further awards from this pipeline towards the end of CY26, underpinning further momentum for the business. We therefore retain our ACCUMULATE rating, with a $9.80 price target.

RWC’s FY26 result was largely in line with expectations, although the margin outlook was softer than anticipated. The result was overshadowed by Brookfield Capital Partners’ unsolicited, non-binding indicative proposal to acquire 100% of RWC for $4.75 per share. The offer represents a 31.6% premium to RWC’s last closing price of $3.61 and implies an FY26 EV/EBITDA multiple of 12.1x. We reduce our FY27-29 underlying EBITDA forecasts by 5%. Our target price increases to $4.62 (from $3.60) following Brookfield’s takeover proposal, reflecting a 90% weighting to the $4.75 offer and a 10% weighting to our fundamental valuation of $3.42. We maintain our HOLD rating.

FY26 confirms PME is executing at an even higher level than the market gave it credit for. EBIT margin of 74.9% and constant currency EBIT growth of 30.6% both beat expectations comfortably, with the FX-driven softness in headline revenue a currency story, not a demand or execution one. Momentum remains broad-based, implementations are ahead of schedule, renewals are a clean sweep, and the pipeline is opening up in new segments rather than just deepening in existing ones. Looking ahead, FY27 is shaping as a genuine standout year. With four Trinity cohorts and 15 other implementations already banked rather than still ramping, the P&L gets the full run-rate benefit without needing fresh signings just to stand still. Nothing in the result gives us any pause for change versus our positive view. Retain ACCUMULATE call, with our A$230 target price unchanged.

Tencent Holdings Ltd is a Chinese multinational technology conglomerate and holding company headquartered in Shenzhen. Its services include social network, music, web portals, e-commerce, mobile games, internet services, payment systems, smartphones and multiplayer online games. The company is split into six groups: Corporate Development Group, Cloud & Smart Industries Group, Interactive Entertainment Group, Platform & Content Group, Technology Engineering Group and Weixin Group.

CoreWeave is a US-based AI cloud provider or Neo Cloud Provider (NCP). It specialises in NVIDIA GPU clusters for training and inference workloads. Listed on Nasdaq in March 2025 with a market cap of approximately US$49bn, CoreWeave operates 43 data centres with 850 megawatts of active power and contracted access to 3.1 gigawatts of total power capacity.

Solid 2H26 growth was as expected, but the mid-point of FY27 EBITDA and DPS guidance ranges was c.3% and c.5% below consensus expectations, respectively. Material EPS/DPS forecast downgrade for FY27F, mild upgrades FY28-29F. DCF-based target price set at $3.56/sh. Moderate from TRIM to HOLD given today’s material share price decline improves potential TSR to c.2%.

Quality contractor with a “Made Personal” approach. FDC combines a 36-year track record, disciplined project selection and a relationship-led model that drives repeat and non-tendered work, supporting project wins and margin outcomes. Attractive earnings growth, visibility and cash generation. We forecast ~12% revenue and NPAT CAGR from FY25-FY28, and note ~71% of FY27 revenue is already secured. A capital-light model, strong net cash position and free cash flow support a 70-90% dividend payout ratio. Valuation. We initiate coverage with an ACCUMULATE recommendation supported by a $3.97 target price and a >5% dividend yield forecast.

A2M’s FY26 result was broadly in line with recent guidance. China label IF was the key area of weakness, however the rest of the portfolio delivered solid growth. FY27 outlook comments were materially weaker than expected; however, we view them as conservative and would not be surprised if guidance is upgraded at the AGM. While the 1H27 result will be weak, double-digit earnings growth will resume in 2H27 and out to FY30, underpinned by new products, supply chain transformation, and the scaling of new and other geographies. We maintain our ACCUMULATE rating with a revised PT of A$7.62 (was A$8.30).

The Bowdens DFS confirms a materially larger and longer-life project, with reserves up 30% to 93.5Moz at 60.8g/t Ag, and total operational life extended to 26 years (previously 16 years). Project economics have improved materially, with DFS Stage 1 pre-tax NPV5 up 144% and IRR lifting to 31.5% (base case US$45/oz Ag, AUD/USD 0.70), despite notably higher upfront capital requirements. We maintain our SPECULATIVE BUY rating and lift our price target to A$0.43 per share (previously A$0.40 per share).