Sectors: Building & Construction
Reece (REH) +2.18%: delivered a mixed FY26 result, with a solid recovery in Australia and New Zealand offset by ongoing weakness in the US housing market. The volatility in the share price intra-day, showed some indecision, but overall, we think the evidence over the cautious rhetoric from management is what we should really take on board;
Hi MM. I have been the beneficiary of your service for a number of years and have benefited and greatly enjoyed your robust commentary and guidance.
My Q; I have unfortunately been the holder of LLC (Leand Lease) and ridden their downward spiral……has their valuation finally plateaued and is it now at a price where you may think about adding; or should one just take whatever value is left and run. Of course, general advice only.
Many thanks,
John
HI Team, Thanks for the daily podcasts and written reports. I realise I have missed the cut-off, but a quick one if you could fit it in. Just after your thoughts on the recently FDC IPO and listing yesterday. Many Thanks Jeremy
Yesterday, the building stocks caught our attention with Reliance Worldwide (ASX:RWC) and Reece (ASX: REH) rising in a falling market, while James Hardie (ASX: JHX), which we own, slipped 2.4% after announcing it would defend a Class Action in Victoria on 2025 forecasts. The news was no great surprise, but prompted us to consider whether JHX was the best vehicle for exposure to a construction recovery when at least part of their attention may be focused elsewhere.
JHX -0.86%: Posted a solid fourth quarter update however FY27 guidance came in slightly below expectations, with softer assumptions around US housing activity and weather disruptions weighing on sentiment despite a resilient underlying result.
A question for Saturdays Q&A.
What is MM’s view on ACF? Share price seems to have slowly deflated from over $1.00 to current 83c. Franked yield of 5.9%, a consistent dividend payer and potentially the recipient of contract awards for the Brisbane 2032 Olympic games in the near term to give it a revenue boost over the next few years. Seems an interesting way to tap into the infrastructure thematic. I am a holder but considering adding further. Thanks David
Hi guys
REH rose +6.8% on Wednesday as easing concerns around the war’s impact on construction activity drove a rebound in the plumbing supplier. The stock like many in the space has struggled over the last few years but after delivering a strong 1H in February with FY26 Ebit guidance coming in ~5% above consensus the stock pushed towards fresh 9-month highs Here.
