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Highlights

  • James Hardie Industries is a world-class manufacturer of premium building products
  • In FY24, adjusted net income of the company increased by 17% YoY to USD 707.5 million
  • AustralianSuper has the maximum stake in the group with a shareholding of nearly 7.30%

James Hardie Industries plc (ASX: JHX) is an ASX-listed international manufacturer of premium building products. Established in the 1980s, the company produces and markets high-performance fiber cement siding and backerboard.

In the financial year 2024 (FY24), net sales of JHX increased by 4% YoY to USD 3,936.3 million on the back of increases in average net sales price and volumes. During the reported period, adjusted net income jumped 17% YoY to USD 707.5 million due to cost savings, underpinned by lower pulp prices and Hardie Operating System savings, comprising plant improvements, which offset increased freight and cement costs.

Growth prospects for materials sector

As per the data released by the Australian Bureau of Statistics (ABS) on 5 June 2024, in the March 2024 quarter, gross domestic product of Australia increased by 0.1% on a seasonally adjusted basis. While, on an annual basis, GDP expanded by 1.1% over the previous corresponding period.

Gross value added surged by 0.1% in the March quarter as 11 out of 19 industries witnessed growth.  GVA of the mining industry increased by 0.1% on quarterly basis, despite weather-related disruptions to production and weak commodity prices.

Top shareholders of JHX

The top 10 shareholders of JHX have around 42.25% shareholding in the company. AustralianSuper has the maximum stake in the group with a shareholding of nearly 7.30%.

Outlook

In FY25, the company expects to report adjusted net income of USD 630 – 700 million with capex of nearly USD 500-550 million. The expected range of North American volumes is 2,950 – 3,150 million standard feet and North American EBIT margin is anticipated to fall in the range of 29% to 31%. The company intends to outperform the market, to invest for long-term success and to grow its business.

Share performance of JHX

JHX shares closed 3.19% higher at AUD 48.22 apiece on 13 June 2024 with a market cap of AUD 20.27 billion. In the last one year, JHX’s share price has jumped 23.36%, and in the last three months, it has declined by over 21%.

The 52-week high of JHX is AUD 63.110, recorded on 8 March 2024, while the 52-week low is AUD 37.96, recorded on 13 June 2023.

JHX Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 13 June 2024. The reference data in this report has been partly sourced from REFINITIV.