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Infrastructure sector is the backbone of every country. The sector consists of entities involved with power, water, transport services. These services lend support towards a smooth functioning of day-to-day activities.
Earlier, this month, NZ government announced a package of $31 billion for transport infrastructure to be utilised in Auckland. As per latest reports, the government is ready to invest billions of dollars to provide impetus to further home construction. New Zealand would also eliminate a few tax breaks for investors as the government attempts to decelerate the ever-increasing property prices.
NZ’s infrastructure sector is backed by strong performances of the companies, which remained poised and resilient amid the grueling pandemic, last year. These companies announced impressive half-yearly results owing to cautious planning, with effective and efficient cost reduction management.
With optimistic view about the future growth these infrastructure stocks continue to ride high on their current business performances.
Source: Copyright © 2021 Kalkine Media Pty Ltd
So, let us examine the 5 NZX stocks relating the infrastructure segment which have bloomed amid the current economic situation.
Steel & Tube Holdings Limited (NZX:STU)
Source: Copyright © 2021 Kalkine Media Pty Ltd
Steel & Tube Holdings Limited reported EBIT of $7.6 million, a sturdy enhancement of 33% in its earnings for H1FY21. Operating cash flows were on a rise to 40% at $24.0 million along with zero debts, reflected a robust balance sheet which in line to support the Company’s future growth plans and investments.
However, its revenue which stood at $226.3 million were marginally low on the previous year, due to the adverse effect on the 1st quarter sales arising from the pandemic. Nonetheless, the Company emerged stronger and reported a steady Q2. Its NPAT grew to $4.3 million, rise from the loss of $3.7 million on the previous year.
The Company remains optimistic about strong residential and infrastructure performance and is likely to continue its steady growth.
STU declared an interim dividend of $1.2 cps, which was paid on 26 March 2021.
On 26 March 2021, at the end of the trading session, STU was flat at $0.990.
Metro Performance Glass Limited has recently revealed its guidance for FY22. Despite the jolts from the pandemic, Metro Performance has remained resilient and poised and adapted itself with the changed economic condition across the globe.
The Company has effectively and efficiently controlled its costs, which helped it to minimise the impact of the Covid situation.
It anticipates an EBIT between $16.5 million to $18.0 million as compared to the FY20’s guidance of $21.8 million.
On 26 March 2021, at the end of the trading session, MPG traded flat at $0.360.
Cavalier Corporation Limited (NZX:CAV)
Cavalier Corporation Limited recently, announced a strong half year result for H1FY21, with increased sale of woollen carpets and $2.5 million gains from the sale of Auckland property. It had introduced a new brand “Bremworth” for its carpet business and rolled out Lifestyle collection range at affordable prices.
PAT climbed to $4.3 million, and EBITDA was recorded at $4.8 million during the half year period.
The Company will soon launch its Bremworth marketing campaign in H2FY21 and will continue to give priority to magnificently designed carpets by emphasizing on innovations.
CAV anticipates increased woollen carpet sales for FY21 as compared to the last year along with continuous economic growth in the country.
On 26 March 2021, at the end of the trading session, CAV traded flat at $ 0.340.
Fletcher Building Limited made good progress in FY21, with revenues amounting to $3,987 million up by 1% on pcp. EBIT and NPAT rose significantly by 47% and 48% at $323 million and $121 million, respectively. $428 million were recorded as cash flows reflecting a strong and robust balance sheet.
Fletcher had announced interim dividend of $12 cps, which was paid on 24 March 2021.
On 26 March 2021, at the end of the trading session, FBU was up by 0.43% at $6.950.
Skellerup Holdings Limited (NZX:SKL)
With record unaudited NPAT standing at $19.5 million, Skellerup Holdings Limited gave an impressive performance for the half-year period ended 31 December 2020.
SKL’s revenue stood tall at $136.6 million, and EBIT climbed at $27.6 million, up 11% and 53% respectively on pcp. Further, the Company’s operating cash flows were on a high at $35.1 million, reflecting stable balance sheet and focus on future growth.
The Company announced an interim dividend of $6.5 cps, which was paid on 18 March 2021 to its shareholders. It has confirmed its NPAT guidance that has increased from $33 million to $37 million for FY21.
On 26 March 2021, at the end of the trading session, SKL was up by 3.20% at $4.190.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)