- Material stocks act as the building blocks for a sustainable economy.
- Fletcher Building to announce its FY21 results towards mid-August.
- For now, SMW Group ceases its contract to purchase Sarina Crane Hire.
Material stocks play a significant role in the sustainability of the economy, for they provide crucial raw materials and supplies like metals, paper, forest products, plastic, chemicals, construction materials, etc., which act as building blocks of the economy.
Given the above backdrop, we would now take a glance at the most popular NZX material stocks.
Source: Copyright © 2021 Kalkine Media
First on the list is Fletcher Building Limited, which is one of the largest companies listed on NZX. It holds some of the major construction and infrastructure projects across the country. The Company had declared to release its FY21 results on 18 August.
On 6 August, at the time of writing, Fletcher Building was trading up by 0.26% at NZ$7.660.
ArborGen Holdings Limited (NZX:ARB)
Second on the list is ArborGen Holdings Limited, a leading supplier of advanced genetics tree stocks for the forest industry. Recently, it has disclosed to hold its 2021 Annual Shareholders’ Meeting on 19 August.
The Company aims to pass resolutions regarding the election and the re-election of its directors as well as to fix the remuneration of its auditor, Deloitte, in the ASM.
ArborGen Holdings was trading flat at NZ$0.325 on 6 August, at the time of writing.
SMW Group Limited (NZX:SMW)
Following that, we have a diversified engineering group, SMW Group Limited, which offers solutions for mining, industry, defence and rail. As per the reports, the Company had announced the termination of a conditional agreement, which was entered in April 2021, to acquire Sarina Crane Hire.
Given the uncertainty and volatility within the market during the current times, the Company has decided not to proceed further with the transaction.
The shares of SMW Group were trading flat at NZ$1.0, on 6 July, at the time of writing.
MHM Automation Limited (NZX:MHM)
Now, we would be looking at MHM Automation Limited, a famous designer and supplier of automated systems for logistics as well as food processing industries across the world. The Company in its trading update stated that it anticipates an enhanced EBITDA of a minimum of NZ$3.5 million for the financial year ended 30 June 2021, owing to solid workloads across its businesses as well as significant projects nearing completion.
Moreover, to continue this positive momentum into 2022, MHM is increasing its investment, keeping in mind the future demand as well as building a sustainable pipeline of new projects.
At the time of writing, on 6 August, MHM Automation was trading down by 1.56% at NZ$0.630.
Steel & Tube Holdings Limited (NZX:STU)
Last on the list is Steel & Tube Holdings Limited, which manufactures and supplies steel throughout NZ. Underpinned by the strong performance of its core business, improved customer service and a significant reduction in its underlying cost structure, the Company forecasts its EBIT for FY21 in the range of NZ$20 million- NZ$22 million.
Also, STU plans to distribute a final dividend next month, which would be consistent with its dividend policy.
On 24 August, the Company would publish its FY21 results.
Steel & Tube Holdings was trading flat at NZ$1.150, at the time of writing, on 6 August.