Page 3 - Private Wealth Professional SMA (Balanced) PDF Factsheet

Buy Worley Ltd (WOR)

Worley Ltd (WOR) is an Australian headquartered global engineering company. The business provides
project delivery, asset services and consulting to the energy, chemicals, and resources sectors. Worley
offers comprehensive engineering services throughout the project lifecycle, which includes planning,
development, operations, maintenance, and decommissioning. The company employs a large
workforce of engineers and consultants to tackle complex technical challenges for its clients. Recently,
Worley has shifted its focus towards sustainability, aiming to derive 75% of its revenue from
sustainability-related projects by 2026. This includes initiatives in decarbonization, renewable energy
sources like offshore wind and hydrogen production, as well as carbon capture and storage
technologies. The company has a global presence, operating in multiple regions including the
Americas, Europe, the Middle East, Africa, and Asia-Pacific.

Our View

- Strong pipeline of work ahead, which is largely essential due to the climate transition
- Persistently screening high in our systematic process, with attractive earnings growth and at a
reasonable valuation
- Most recent results provided guidance for low double-digit growth ahead
- WOR expects FY25 growth to come from a high proportion of higher-margin sustainability
related work.
- Sustainability-related work is 51% of the pipeline and increased QoQ in 4Q.
- This work is not slowing and is supportive of earnings growth
- Competition is very low for project tenders.

Buy Idp Education (IEL)

IDP Education (IEL) is a prominent international education organization that specializes in facilitating
study abroad opportunities for students. Established in 1969, IDP has evolved into a global leader in
education services for institutions in Australia, the United Kingdom, the United States, Canada, New
Zealand, and Ireland. Core services include student placement for visa applications, English language
testing, English language training and ongoing student study support such as accommodation
arrangements.

Our View
- As moving to Australia becomes increasingly competitive and complex, IDP’s services become
increasingly valuable and in demand for students. This may be offset by lower student
numbers ahead, but this will impact IDP’s small peers more significantly potentially giving IDP
an opportunity to strengthen their market leading position.
- Ongoing political arguments about student numbers in Australia. The outcome of these policy
debates has had a material impact on IEL, driving short-term sentiment on the stock.
However, for a government short on economic growth and worsening demographics, and for
universities short on funding, this is likely to be a short-term headwind
- Attractive opportunity to buy a very high-quality business, global leader in its space, during
fairly wild swings in short-term sentiment which have seen the share price fall considerably to
very attractive levels.

psk.com.au

PSK Financial Services Group Pty Ltd (ABN 24 134 987 205) trading as PSK Private Wealth and Employee Representatives of PSK Advisory Services Pty Ltd trading as PSK Private Wealth are all representatives of AFS licensee, PSK
Advisory Services Pty Ltd (ABN 30 008 587 595) AFSL #234656. This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to
consider your financial situation and needs before making any decisions based on this information.