Commentary Feed

Wilson Asset Management continues to hold SKS Technologies Group because the electrical and communications contractor has successfully pivoted toward data centre work, which now represents roughly 50% of revenue versus 0% in FY2023. The manager cites a data centre tender pipeline exceeding $1 billion and recent contract wins, including a $28m early works contract for AirTrunk's MEL2 hyperscale facility in Melbourne, as evidence the pipeline is converting into revenue. Wilson Asset Management expects continued organic earnings growth and upside to medium-term consensus estimates, with expansion into the NSW data centre market seen as a further catalyst for the stock.

Pendal Group continues to hold James Hardie Industries because the building products maker pre-announced its 1Q27 results with an 11% beat on Group EBITDA, driven by much stronger than expected North American siding sales. The manager attributes the outperformance to better underlying demand, an easier prior-year comparison, revenue synergies from the AZEK acquisition, a competitor's market exit, and improved commercial execution.

Pendal Group continues to hold Sandfire Resources because the copper miner delivered a 13% beat on Q4 copper production, comfortably meeting FY26 guidance as both the Matsa and Motheo operations beat expectations on higher grades and throughput. EBITDA came in 10% ahead of expectations and net cash rose by a record A$277 million to A$353 million, even before a potential Black Butte sale. Pendal notes higher copper prices are flowing through to earnings and expects an inaugural dividend next month given the company is not seeking to build a cash war chest.