CSR Limited

CSR Details

Higher Volume and Improved Pricing Lifted Building Products’ Earnings: Despite gaining some traction in the market at the back of healthy construction activity and commodity pricing, CSR Limited’s (ASX: CSR) stock was slightly down by 0.951% on March 28, 2018, as the company announced some changes in Board entailing Jeremy Sutcliffe, the chairman to be retiring from the board, and John Gillam to be appointed in place of him, effective from 31 May 2018. The company also provided buy-back share update wherein total number outstanding shares i.e., 1,692,088 were bought back with the amount of $5,837,497.60. Recently, Yarra Funds Management Limited and other related bodies became substantial holder of the group with 5.1530% voting power.

On the other hand, the group reported NPAT growth (before significant items) of 32% to $136.6 million for the half year ended 30 September 2017. Building products delivered strong gains with EBIT (Earning Before interest and Tax) growth of 5% to $120.3 Mn in 1HFY18. Healthy market conditions for residential housing on the east coast of Australia helped the rise in prices and volumes. Aluminium was also higher with EBIT rise of 27% at the back of higher realised prices. The group expects that NPAT (before significant items) for full year of 2018 ending March 2018 will be in the range of $187 Mn to $223 Mn. In addition to this, CSR Building Products business has continued its track record of growth in earnings which improved for the fifth consecutive year. We expect that the company will continue to offer its highest exposure to Australian residential construction across the region.

Meanwhile, the stock prices were up by 14.85 per cent in the past six months and are inching towards the high level. We give an “Expensive” recommendation on the stock at the current market price of $5.21, and would review the same at a later date.
 

NPAT Performance (Source: Company Reports)

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