Down 20% and Yielding 9%, Is This ASX Mining Share a Bargain?
Down 20% and Yielding 9%, Is This ASX Mining Share a Bargain?
The Given the mining sector's size on the ASX exchange, it may not be practical for ASX investors to avoid the industry entirely.
考慮到ASX交易所礦業行業的規模，ASX投資者可能不太可能完全避開該行業。
One alternative that investors can consider is the mining services sector, which includes companies that provide various services to miners.
投資者可以考慮的一個替代選擇是礦業服務行業，該行業包括爲礦工提供各種服務的公司。
This approach can help mitigate the impact of commodity price fluctuations, but many of these ASX shares are in the small and mid-cap space, which may lead to higher volatility.
這種方法可以幫助緩解商品價格波動的影響，但許多ASX股票位於小型和中型市值空間，這可能導致更高的波動率。
The $GR Engineering Services Ltd (GNG.AU)$ share price has fallen approximately 20% in about six months from its 52-week high of $2.45 on 12 February 2024.
本基金尋求於東歐地區註冊的主要權益關聯發行人的長期升值投資。$GR Engineering Services Ltd (GNG.AU)$ 的股票價格自2024年2月12日的52周高點$2.45起約6個月下跌了約20%。
This is a larger drop compared to bigger mining companies like $BHP Group Ltd (BHP.AU)$ or $Rio Tinto Ltd (RIO.AU)$, whose share prices have fallen approximately 10% during the same period.
，如 $BHP Group Ltd (BHP.AU)$或。$Rio Tinto Ltd (RIO.AU)$，其股票價格在同一時期內下跌了約10%。
However, the higher volatility may also present more opportunities to profit if a stock is undervalued unjustly.
然而，更高的波動性也可能提供更多的機會來獲利，如果一隻股票被不公正地低估。
Could this be the case for GR Engineering shares? Let's find out.
GR Engineering股票是這種情況嗎？讓我們來看看。
Why is the GR Engineering share price so low?
爲什麼GR Engineering股票價格這麼低？
It is simply because no mining-related company can be completely immune to the commodity cycle.
這僅僅是因爲沒有任何與採礦有關的公司可以完全免疫商品週期。
GR Engineering shares have primarily traded between the $2.2 to $2.5 level since the beginning of the year despite weak commodity prices globally. However, the share price broke down to that level when mining giant BHP Group announced a temporary suspension of its Nickel West operations and the West Musgrave Project, as my colleague James highlighted.
儘管全球商品價格疲軟，GR Engineering股票自年初以來主要在$2.2到$2.5水平之間交易。然而，當採礦巨頭BHP集團宣佈暫停其Nickel West運營和West Musgrave項目時，該股票價格破位，就像我的同事詹姆斯(Tom)指出的那樣。
GR Engineering had signed contracts with BHP to design and construct the West Musgrave Project, which could have been one of the company's most significant projects. GR Engineering expects this suspension will impact its expected FY25 revenue by up to $80 million.
GR Engineering已與BHP簽署設計和建設West Musgrave項目的合同，該項目可能是公司最重要的項目之一。GR Engineering預計這種暫停將影響其預期的FY25營業收入高達8000萬美元。
Too cheap to ignore?
太便宜不能忽視？
GR Engineering shares are valued at 11.5x its trailing 12 months' earnings per share (EPS). Its historical price-to-earnings (P/E) ratios ranged between 7.5x and 18x.
GR Engineering股票的估值爲其過去12個月每股收益(EPS)的11.5倍。其歷史市盈率(P/E)爲7.5倍至18倍不等。
There is good news and bad news. The bad news is that GR Engineering's earnings fluctuated greatly in the past down cycles, indicating that future earnings might be lower, leading to a higher P/E multiple on a forward basis.
好消息和壞消息都有。壞消息是GR Engineering的盈利在過去的下行週期中大幅波動，表明未來盈利可能較低，從而導致前瞻性的較高P/E倍數。
The good news is that the company has exposure to many gold-related projects, and the price of gold has increased by 25% in the past year, approaching its all-time high.
好消息是該公司涉足了許多與黃金有關的項目，黃金價格在過去一年中上漲了25%，接近歷史高點。
GR Engineering shares offer a dividend yield of 9.6%, which is attractive even if we consider some probability this might fall in the coming year in case its earnings fall.
GR Engineering股票提供9.6%的股息收益率，即使我們考慮未來盈利下降的可能性，這也很有吸引力。
The company also has a clean balance sheet with $58 million in cash, equivalent to 18% of its current market capitalisation. This means when you buy GR Engineering shares today for approximately $2, it will include 40 cents in cash and $1.6 for all its business operations.
該公司還擁有乾淨的資產負債表，現金5800萬美元，相當於其當前市值的18%。這意味着，當你今天以約2美元的價格購買GR Engineering股票時，它將包括0.4美元的現金和1.6美元的所有業務運營。
The GR Engineering share price is down 0.25% today and is at $1.97 at the time of writing.
GR Engineering股票今日下跌0.25%，交易價格爲1.97美元。
