Boral Limited (ASX: BLD)
Boral Limited (ASX: BLD) is a name known for manufacturing as well as supplying building and construction related materials across Australia, Asia at large and the United States. Boral Australia is the key provider catering to strong & resilient infrastructure, non-residential and residential construction markets. Boral Australia is strengthening margins and customer experience through innovation and excellence programs; and contributes 53% share of total underlying revenue of Boral Group.
On 18 September 2018, the company presented its Investor presentation of Boral North America. The Boral North America is very well placed in fly ash and building products, providing highly attractive growth opportunities in US markets. Boral North America contributes 35% shares of total underlying revenue of the Boral Group. The revenue of Boral North America has increased from $726 million in FY 2017 to $1,656 million in FY2018. Boral North America’s EBITDA grew from $84 million to $284 million. Boral North America is expecting EBITDA growth of around 20% in FY2019. The underlying market growth is expected around 5% in housing, around 2% in non-residential and around 6% in infrastructure.
In the financial year 2018, the Boral Limited witnessed a substantial growth of 47% in the net profit after tax before amortization and significant items to $514 million in FY2018 compared to last year. The reason behind this growth is the contribution from Headwaters, higher earnings from Boral Australia and a great performance from the USG Boral joint venture. The Company’s Sales revenue increased by 34% to $5.9 billion, and earnings before interest, tax, depreciation and amortization (EBITDA) increased by 47% to $1,056 million which reflects a full 12-month contribution from Headwaters and strong growth from Boral Australia. In the past six months, Boral’s share price decreased by 6.47% from $7.450 to $6.94 as on 25 September 2018. The group trades at a P/E of 18.530x which is lower than some of its peers while we see growth opportunities in the pipeline.
CSL Limited (ASX: CSL)
CSL Limited (ASX: CSL) is in the business of manufacturing and distribution of biopharmaceutical and allied products. For the financial year 2018, the total operating revenue of the company increased by 14%. The main cause behind this significant growth in the revenue of the company is its plasma therapies division, CSL Behring. The product sales of the division increased by 11% to $6678 million and the EBIT margin also increased from 32.5% to 34.1%. The company has launched a product - Haegarda which is used to treat hereditary angioedema. Haegarda has almost grabbed about half of the share in the US prophylactic market; and according to the company’s report in the last five years, Haegarda has been the most successful chronic drug launch in US. Group’s vaccine division, i.e., Seqirus also showcased to have profit (for the first time) with $52 million as EBIT against the loss witnessed last year. Due to success of the CSL’s products in the market the net profit after tax of the company increased from $1337 million in FY 2017 million to $1729 million in FY2018. At the same time, the company’s R&D expenditure investment increased from $667 million in FY2017 to $702 million in FY2018 to support innovation and develop innovative biotherapies which could address the unmet medical needs and enhance current medical treatments.
In the past six months, the company’s share price increased by 31% from $157.01 to $204.93 as on 25 September 2018. The stock was down 1.2% as at market open on September 26, 2018. While the group is performing well and touching great heights, it looks to be trading on a higher side in terms of price.
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