Building Material & Const

Aged care market sound; Dick Smith’s problem inventory; Housing outlook robust; Inbound tourism on the rise; El Nino impacting electricity pricing.

James Hardie missed its targets again in the first half, with growth in US market share stalling amid soft volumes. Most brokers are still willing to give the company the benefit of the doubt.

Brokers remain divided over the outlook for CSR and just how long the housing cycle can underpin robust earnings growth.

Wesfarmers’ retail businesses delivered across the board sales growth in the September quarter and appear resilient, but most brokers find valuation support is only modest.

What does “peak” mean in terms of housing; equity issues in Australia; picks in consumer sector; AUD gold stocks; AUD and NZD; Asian doldrums; Osprey Medical; Blackmores.

Brokers are starting to mull the peaking of Australia’s housing cycle and whether monetary authorities will be able to manage a soft landing.

Subdued economic indicators; Apple boosts consumer electronics; supermarket networks; insurer brand pricing; A-REITs performance; housing cycle; building materials stocks; Asian gaming junkets; Goldman Sachs initiates coverage on 3P Learning.

In the midst of substantial residential building activity, Brickworks posted a robust FY15 result and momentum is expected to continue strongly in FY16.

Debate around James Hardie in the US market centres on whether market share and product penetration will provide the necessary step-up in growth.

Brokers came away from CSR’s investor briefing confident in the outlook for building materials and the company’s position at the forefront of innovation.