CSR share price rise (ASX: CSR) on positive outlook
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Actions in CSR Limited (ASX: CSR) are trading slightly higher today, following positive feedback from the company’s annual general meeting.
Read on to find out why CSR management is optimistic about the company’s prospects.
Why is the CSR share price the center of attention?
Earlier today, CSR held its annual general meeting for shareholders and investors. As part of the presentation, the company’s management highlighted a positive outlook for the company.
CSR Chairman John Gillam informed shareholders that the outlook for the Australian residential construction market has improved significantly over the past year. Mr. Gillam pointed to the combination of the Federal Government’s Homebuilder Grant program and various state government initiatives for a positive outlook.
CSR CEO Julie Coates also noted that the homebuilders business is driving higher demand. In addition, she pointed out that the company is experiencing longer periods between approvals and start-ups due to labor and product shortages.
As a result, management noted that demand for CSR products will be extended through the end of the year and through calendar year 2022. The company stressed that it was well positioned to meet demand and adapt to increase production as needed.
CSR stressed that the company is ready to build on a solid position in the single-family home market and to diversify into other construction sectors.
Snapshot of the CSR share price
CSR is one of the leading construction products companies in Australia and New Zealand. The company has an impressive portfolio of brands, including PGH bricks and pavers, Gyprock plasterboard and Bradford insulation.
Despite a tumultuous 2020, the CSR share price jumped more than 15% in 2021. The company’s shares have benefited from the construction boom in Australia.
The CSR share price recently hit all-time highs after a positive annual result. Despite the disruption of the pandemic, the company recorded a 17% increase in its statutory after-tax net profit of $ 146 million. In addition, the company also reported an 8% increase in group earnings before interest and taxes (EBIT) of $ 184.3 million, with EBIT margins also rising from 10.7% to 12.0%.
The CSR share price was recently boosted by construction approvals data from the Australian Bureau of Statistics (ABS). As a result, market analysts noted that the company is still at the start of a earnings upgrade cycle.
CSR shares hit an all-time high of $ 6.48 earlier this year after its full-year positive result. At the time of this writing, the CSR stock price is currently trading at around $ 5.95.