Shares in building products business CSR Limited (ASX: CSR) shot some 5 per cent higher in trade today after the business posted a full year profit of $166 million on trading revenues of $2.93 billion for the full year ending March 31 2016.
The profit was up 13 per cent above the prior corresponding year and represents a strong result as residential construction activity remains strong across Victoria, New South Wales, Queensland and New Zealand. This has fueled demand for the building products and materials CSR sells, with the company particularly active in providing glass, aluminium, bricks, and other common building materials.
The company expects residential construction markets to remain strong over the long term thanks to population growth, as property remains easily the most in demand asset class in Australia.
At the end of the financial year it had a net cash position of $73.1 million and has launched a $150 million share buyback from March 2016. The stock closed at $3.65 on 11x full year earnings per share of 32.9 cents, with a trailing dividend yield of 6.4% based on the full year payout of 23.5 cents per share.
