STU, CRP: Why are these 2 NZX material stocks surging today?

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STU, CRP: Why are these 2 NZX material stocks surging today?

 STU, CRP: Why are these 2 NZX material stocks surging today?
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Highlights

  • Material stocks play an important role in providing sustainability.
  • Steel and Tube Holdings expects EBIT earnings to be $45 million and above in FY22.
  • Chatham Rock shares were up over 37% on Wednesday.

The material sector comprises all companies that are involved in the discovery and processing of raw materials further used by several sectors and industries. These companies mine and produce core materials that allow them to make production possible.

Nearly every sector needs materials like chemicals, metals, etc., for production.

On this note, let’s see why these 2 material stocks listed on the NZX are trading higher today.

Source: © Onizu3d | Megapixl.com

Steel & Tube Holdings Limited (NZX:STU)

Steel manufacturer and supplier in NZ, Steel& Tube Holdings, has a market cap of $230 million and has given a return of 23.42% in the past 1-year.

STU has reported a 25% rise in its revenue for the 10 months to April 2022 on pcp to $479.3 million and an 89% increase in EBITDA to $54 million. The Group gained from meticulous price and margin management, structural cost savings and supply chain capability.

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The Group expects a normalised EBIT of $45 million and above as well as an EBITDA of $64 million & above in FY22. STU remains focused on growth and building a resilient business while maintaining the availability of critical products and high levels of service while steering through tight supply dynamics.

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On 25 May, at the time of writing, STU was trading at $1.38, up 0.73%.

Chatham Rock Phosphate Limited (NZX:CRP)

Exploration and development company Chatham Rock Phosphate has a market cap of $43 million and has given a return of 247.83% in the past 1 year.

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On 19 May, CRP notified that its subsidiary Avenir Makatea Pty, trading as Korella Terminals, has
begun a scoping study at an export facility in the Port of Townsville. There has been a requirement for a dedicated phosphate/fertiliser terminal for a considerable time.

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This project may also gain the attention of the Queensland and the Federal Government for funding. Results of the study will be available in July this year.

On 25 May, at the time of writing, CRP was trading at $0.55, up 37.5%.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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