Shares in CSR Limited (ASX: CSR) are trading slightly higher today, following positive comments from the company's annual general meeting.
Read on to find out why CSR's management are bullish on the company's outlook.
Why is the CSR share price in focus?
Earlier today, CSR held its annual general meeting for shareholders and investors. As part of the presentation, the company's management highlighted a positive outlook for the company.
CSR chair John Gillam informed shareholders that the outlook for Australia's residential building market has improved significantly in the past year. Mr Gillam highlighted the combination of the Federal Government's Homebuilder grant program and various State Government initiatives for the positive outlook.
CSR's managing director, Julie Coates, also noted that Homebuilder activity was driving stronger demand. In addition, she highlighted that the company was seeing longer periods between approvals to commencements driven by labour and product shortages.
As a result, management noted that demand for CSR's products will be extended across the remainder of this year and into the 2022 calendar year. The company highlighted that it is well placed to meet demand and adapt to grow production as required.
CSR highlighted that the company is poised to build on a strong position in the detached housing market and diversify into other construction sectors.
Snapshot of the CSR share price
CSR is one of the leading building products businesses in Australia and New Zealand. The company boasts an impressive portfolio of brands including PGH bricks and pavers, Gyprock plasterboard and Bradford insulation.
Despite a tumultuous 2020, the CSR share price has surged more than 15% in 2021. Shares in the company have benefited from Australia's ongoing construction boom.
The CSR share price recently hit all-time highs, following a positive full-year result. Despite disruptions of the pandemic, the company delivered a 17% increase in statutory net profit after tax of $146 million. In addition, the company also reported an 8% increase in group earnings before interest and taxes (EBIT) of $184.3 million with EBIT margins also increasing from 10.7% to 12.0%.
The CSR share price was recently buoyed by building approvals data from the Australian Bureau of Statistics (ABS). As a result, market analysts noted that the company is still in the early stage of an earnings upgrade cycle.
Shares in CSR hit an all-time high of $6.48 earlier this year following its positive full-year result. At the time of writing, the CSR share price is currently trading at around $5.95.
