STU - Steel & Tube Holdings

[winner (n)]

Actually - Fletchers residential / development branch didn't look to bad, didn't it?

Not quite sure, what Fletchers (potential) problems with plastic pipes in Australia and problems with Tradelink and their legacy construction issues would have to do with STU.

At loss how to draw parallels from any of Fletchers known problems to STU. Care to enlarge?

They said last couple of months in NZ markets  were down more than thought and the rest of the year probably not that good

And full year guidance shows H2 earnings decline will be greater than H1.

But no doubt like Vulcan Mark will say the bottom has passed and it's all looking good...just I beg to differ

[BlackPeter]

They said last couple of months in NZ markets  were down more than thought and the rest of the year probably not that good

And full year guidance shows H2 earnings decline will be greater than H1.

But no doubt like Vulcan Mark will say the bottom has passed and it's all looking good...just I beg to differ

Fair enough.

You want to share with us why you think that things will further deteriorate - and when (and why) you expect the bottom to come in?

[winner (n)]

Half year out Tuesday

Mark said EBIT ~$11m

Wonder if he'll come out with his first guess of full year number ......bearing mind FY23 EBIT was $31.1m

Wonder if they made an acquisition they can tell us about .....need something to keep top line growing.

[winner (n)]

Whose charged with making sure the STU share price closes at a respectable number doesn't need much cash

Today it only took about 3k to get share price back to 115 after it had languished at 111 most of the day (where it opened after closing 115 Friday)

VWAP was 111.51

Doing a good job that person.

[Shareguy]

Looks good to me. One of the highest divi returns on NZX and should only improve from here.

Investor returns
• Interim dividend of 4.0 cents per share maintained at FY23 level – above 60%-80% target range reflecting confidence in the company's future
• Attractive gross dividend yield of 10.3%
• Earnings per share: 3.2 cents per share
• Net Tangible Assets per share: $1.16
• Price earnings ratio: 17.22

[winner (n)]

Looks good to me. One of the highest divi returns on NZX and should only improve from here.

Investor returns
• Interim dividend of 4.0 cents per share maintained at FY23 level – above 60%-80% target range reflecting confidence in the company's future
• Attractive gross dividend yield of 10.3%
• Earnings per share: 3.2 cents per share
• Net Tangible Assets per share: $1.16
• Price earnings ratio: 17.22

All fine and dandy on the western front

Earnings 3.2 cents ....divie 4.0 cents ($5.3m earnings / $6.7m divie)

Hope that 'confidence in company's future' is not misplaced and comes back to bite them.

Whatever market been seduced by a good rave and share price $1.25/$1.30 soon .....maybe by Friday

[LoungeLizard]

Excellent result, particularly after Vulcans poor one. I like the fact that with no debt, a pile of cash and on-going improvements in costs and inventory, they have emerged from the bottom of the cycle in a good position to take advantage of a few tailwinds coming their way, particularly in infrastructure spend. And an extremely high dividend return in the meantime. Onwards and upwards.

[Shareguy]

Excellent result, particularly after Vulcans poor one. I like the fact that with no debt, a pile of cash and on-going improvements in costs and inventory, they have emerged from the bottom of the cycle in a good position to take advantage of a few tailwinds coming their way, particularly in infrastructure spend. And an extremely high dividend return in the meantime. Onwards and upwards.

Well said. Agree 100 percent.

[winner (n)]

Excellent result, particularly after Vulcans poor one. I like the fact that with no debt, a pile of cash and on-going improvements in costs and inventory, they have emerged from the bottom of the cycle in a good position to take advantage of a few tailwinds coming their way, particularly in infrastructure spend. And an extremely high dividend return in the meantime. Onwards and upwards.

'Excellent result' v 'poor one' ...c'mon mate

V pcp-

STU sales down 17% v Vulcan down 12%
STU ebitda down 31% v Vulcan down 30%
STU npat down 55% v Vulcan down 52%

If Vulcan had 'poor result' than STU had a 'poor result' as well I reckon

But Mark does a good rave eh so all hunky dory

Muted market response so far ......but that person waiting in the wings will see share price close at 115 or higher

[Teitei]

'Excellent result' v 'poor one' ...c'mon mate

V pcp-

STU sales down 17% v Vulcan down 12%
STU ebitda down 31% v Vulcan down 30%
STU npat down 55% v Vulcan down 52%

If Vulcan had 'poor result' than STU had a 'poor result' as well I reckon

But Mark does a good rave eh so all hunky dory

Muted market response so far ......but that person waiting in the wings will see share price close at 115 or higher

Your market perception skills are slipping, W69?

It's all about market expectations and VSL has not performed well there.

[winner (n)]

Your market perception skills are slipping, W69?

It's all about market expectations and VSL has not performed well there.

Yes Rhys has to pull his socks up ......and improve his raving skills .......and get his people to produce charts that show things in good light. Mark leaves him for dead

Disappointed Mark didn't mention a 'Super Cycle' again .....don't know if that's in the past or whether there's one on the way

[BlackPeter]

Yes Rhys has to pull his socks up ......and improve his raving skills .......and get his people to produce charts that show things in good light. Mark leaves him for dead

Disappointed Mark didn't mention a 'Super Cycle' again .....don't know if that's in the past or whether there's one on the way

Super cycle .... Interesting you mention this ...

https://corporatefinanceinstitute.com/resources/economics/supercycle/

and even Motley Fool did talk about it:

https://www.fool.com.au/definitions/supercycle/

I think it makes sense to expect in the coming decade or so world wide a significant uptick in infrastructure investments - The last Infrastructure boom in the Western world (the decades after WW II) is so long ago that lots of stuff is just crumbling ... and NZ is no exception to that. Water Infrastructure is crumbling, our schools, hospitals and police stations are leaking and our roads - well, have a look for yourself.

While the whinging of populists is louder than ever - we clearly need to do something about the problems. Question is only - how long do we keep kicking the can down the road before we do something about the problem?

[Shareguy]

Just out from Craig's

STU – STOP PRESS – STU has delivered 1H24 normalised EBIT of $11.3m (in line with guidance of $11m+ provided 1st Feb), down 47% from $21.5m in the pcp. The sharp decline in earnings was primarily driven by a -17% YoY reduction in revenue, as volume continued to drop in a weak macroeconomic environment (down -22% on pcp), particularly for STU's distribution business. Whilst the result itself is largely pre-guided, there are a few additional updates we like in the result including 1) a 9% improvement in gross margin per tonne, supported by a significant uplift in gross margin % for the Infrastructure division (+410bps) 2) operating costs were flat on pcp despite inflationary pressures as we have seen for other NZ companies 3) net cash increased to $26m from $7m at the end of FY23, with no bank debt 4) an interim dividend of 4.0cps (flat on pcp; despite NPAT down 55% on pcp), with payout ratio above STU's 60%-80% target range reflecting STU's strong balance sheet position. Whilst no guidance has been provided for FY24, we think the above points will be taken positively by the market. STU to trade up slightly today ...

[winner (n)]

Super cycle .... Interesting you mention this ...

https://corporatefinanceinstitute.com/resources/economics/supercycle/

and even Motley Fool did talk about it:

https://www.fool.com.au/definitions/supercycle/

I think it makes sense to expect in the coming decade or so world wide a significant uptick in infrastructure investments - The last Infrastructure boom in the Western world (the decades after WW II) is so long ago that lots of stuff is just crumbling ... and NZ is no exception to that. Water Infrastructure is crumbling, our schools, hospitals and police stations are leaking and our roads - well, have a look for yourself.

While the whinging of populists is louder than ever - we clearly need to do something about the problems. Question is only - how long do we keep kicking the can down the road before we do something about the problem?

Hey BP with passion like that you need to get into politics and become Minister of Super Cycle or similar title ....... Current lot won't do it

Age no problem these days

I'd vote for you

[BlackPeter]

Hey BP with passion like that you need to get into politics and become Minister of Super Cycle or similar title ....... Current lot won't do it

Age no problem these days

I'd vote for you

cheers for the flowers - I'll think about it. I certainly would have still a lot  of miles to go before I reach the age of the past and likely next US president candidates, so - age is clearly not an issue.

And I guess with the proposed portfolio one could only win. If you look into history - there was one supercycle in the 1930íes when everybody did build up their weapons arsenals and armies they needed to destroy each other in the 1940'ies (I reccon this is where we are now - building up, the real destruction still to follow). The third supercylce was in the 1960'íes when everybody did build bridges and other infrastructure (I reccon we soon will be there).

We might even have a super-super cycle where the build up of the armies world wide and the build up of the crumbling infrastructure coincides with building new infrastructure we need to protect us from the symptoms of climate change - followed by a further supercycle to rebuild all the stuff we destroyed with the armies we are currently building up. Look at Ukraine and Gaza to see what I mean.

Opportunities everywhere ... lets do it!