OCBC Investment Research in a Dec 5 research report says: "AusGroup announced that a client had suspended a project for the fabrication of a twin-cell car dumper and iron ore wagon. AusGroup's order book stood at A$286 million as at Sept 30 (including the suspended project). Our revised earning estimates now impute cancellations of 20% of that order book. Our FY2009F revenue estimate falls to A$358 million, or a 5.5% decline. Additionally, we had previously estimated flat growth in FY2010 but now estimate a 15% contraction in revenue to A$304 million. We leave our gross margin estimates, already conservative, unchanged for now but project a slight dip in net profit margin over FY2009-2010. We are lowering our valuation parameter to 5x FY09F earnings from 6x previously. Our fair value estimate drops from 24 cents to 17 cents (15% downside). MAINTAIN HOLD."