SSM Details
New Design and Construction Master Agreement with nbn: Service Stream Limited (ASX: SSM) recently signed a Design and Construction Master Agreement (DCMA) with nbn, wherein the group’s Fixed Communications division will design and construct broadband infrastructure to over 130,000 premises in the eastern regions of Melbourne under nbn’s new Fibre-to-the-Curb (FTTC) technology. The group would start the project on February 2017, and is expected to be finished by April 2019. This contract is of over $120 million value for a term of 2.5 years. 

Financial Performance (Source: Company Reports)
 
Financial Performance: The group reported that its performance is on track for the Q1 FY17. SSM aims to mobilise resources to support Operations & Maintenance contract with nbn. SSM also will extend support to its increasing FTTN construction volumes during H2 FY17. Delivering initial phase of IT platform for improving efficiency is another priority for the group this year. SSM’s Energy & Water segment also secured trial programs and service contracts. This includes Solar PV, Battery storage and Electric Vehicle Charge Station trials with AGL. The group reported 7% growth in revenue to $438.9 million while EBITDA surged 41%. Net profit after tax was up 71% to $20 million. Given the strong results, the group increased the total dividends which indicated a growth of 67%.
 
Stock Performance: SSM delivered over 107.26% in last one year (as of January 12, 2017) and is up 3.3% on January 13, 2017. The stock is now trading at higher levels with a high P/E. We believe the stock is “Expensive” at the current price of - $ 1.10

 
SSM Daily Chart (Source: Thomson Reuters)

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