Research notes

SRG delivered a strong FY26 with EPSA growth of +30%, largely consistent with its 5-year EPSA CAGR of +32%. FY27 guidance was upgraded, and the momentum looks set to continue. Organic growth is strong (2H EBITA +19%) and the order book has risen sharply (+20% in 6 months), providing robust visibility into FY27 and beyond. We increase our target price to $4.70 (from $4.20). Although SRG has re-rated, earnings momentum via organic and inorganic growth could see the company continue to compound +30% EPS growth over the next 3 years. BUY.

With FY27 guidance (6 cpu distribution) issued and an updated NTA ($1.35/sh), the FY26 result goes some way to de-risking HCW. However, a return to stabilised FFO (ps) and cash-covered distributions is likely slower than anticipated (FFO guidance at =4 cpu vs distributions at 6 cpu), and contingent on a progressive ramp up in UHF distributions over time. HCW is trading on an 8% distribution yield and a 47% discount to NTA - clearly attractive metrics. Offsetting this, HCW will be overdistributing while the UHF fund de-levers (UHF gearing at 43%), and subsequently investors should expect HCW’s cash payout ratio to trend down from 1.5x towards <1.0 in FY30, with an underlying payout ratio c.100%. We reiterate our SPECULATIVE BUY, PT $0.85/sh.

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.