Good. However - just wondering, whether they will build all these new houses completely with steel? Maybe they leave a handful of dollars for other building materials and windows :) ?
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Steel & Tube saying prices will continue to go up. Higher margin dollar per tonne/item is going to mean higher profit. Can we have an update please Mark Malpass.
https://steelandtube.co.nz/sites/def...March_2022.pdf
Steel supply situation still very tight out there according to builders I have talked to but manageable as long as orders are made in advance.
Something which would be of interest to some posters :
Met a construction company which specializes in using mostly steel & concrete for all their buildings (residential, industrial & commercial) and found the meeting to be most beneficial & revealing. Their building method is certainly not conventional for NZ but well established overseas.
They have been in business for just over 10 years and have completed $3 billion of construction projects in that time with an ever growing order & project pipeline.
With the increases in building material costs, especially timber and cladding materials, they can now construct buildings cheaper with steel & concrete (saving around $300 sq meter) as well as shorten the construction time by several months. Our team have evaluated the numbers and can confirm that their numbers stack up.
I asked about the steel supply situation and they said that it could become problematic in the short term if more players in the industry switch over to their building method but that's not going to happen as the industry is pretty backward in adopting 'new' techniques. Longer term, they see more and more players using steel & concrete - which is used extensively overseas, especially in Asia.
We are working through using them for a project now and so far, we are most impressed.
Vulkan steel just updated. Come on STU Where's your update
Stu will also have a fantastic result. Craigs have eps fy22 of 17.85 cps so a pe of 8. And if that does not get you going a 12 percent divi. Market says rubbish as shown by pathetic share price OR is the market wrongly pricing this stock.
Always a good sign when Independent Director buys shares
Vote of confidence from Stephen