Skip to main content
EquitiesMining Services

Genusplus Group (GNP): Gathering momentum

Recent contract awards add to momentum

In this report we outline recent company developments and key ideas in support of our Buy thesis. Key points:

Contract update: Since our last report published on 20 December 2024, GNP has announced two significant contract awards. Firstly, GNP was announced as the head contractor for TasNetworks’ Stage 1 North West Transmission Developments project. The initial phase of the contract (ECI Phase) is for the delivery of engineering and design works, valued at $42m. The second, Construction Phase is scheduled to commence in 2Q 2026, with completion expected in 2029. The total value of Stage 1 works is $950m. Secondly, GNP announced a work package for Western Power’s Clean Energy Link project (North Region) valued at ~$270m, with works to commence in January 2025 and scheduled to complete in mid-2027. In addition, GNP received a notice to proceed from Transgrid on the HumeLink Transmission Project. GNP anticipates commencing onsite works in May 2025 and practical completion in late 2027. GNP’s share of the HumeLink East project contract value is ~$350m.

Orderbook analysis: We have illustrated the revenue recognition profile of 8 major contracts announced over FY24-25 for completion in 2H FY25 onwards. Findings of our analysis highlight: (1) ~90%+ of our revenue forecasts are now contracted, giving us a high degree of confidence in our 23% EPS CAGR outlook; and (2) each successive major contract award from now will likely drive an upgrade to our (and possibly consensus) forecasts. You can find more details of our analysis on page 2 of this report.

EPS changes: We make no material changes to our forecasts.

Investment thesis: Buy, TP$3.10/sh (unchanged)

We continue to see GNP as a key small-cap investment opportunity to play the theme of increasing investment in renewable energy, battery energy storage and transmission infrastructure across Australia. GNP’s valuation multiples are undemanding when considering our EPS CAGR expectation of 23% over FY24-27.

To read the full report click the button below.

View Detailed Report
Authored by Joseph House – Analyst – at Bell Potter Securities, 13 January 2025
Important Disclaimer—This may affect your legal rights: Because this document has been prepared without consideration of any specific client’s financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. In the USA and the UK this research is only for institutional investors. It is not for release, publication or distribution in whole or in part to any persons in the two specified countries. This is general investment advice only and does not constitute advice to any person.
Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended.