ASX construction stocks are on the rebound thanks to a $50bn-powered boom
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ASX construction stocks are back in positive territory on a 12 month basis and have seen a 35 per cent return in six months.
But stimulus measures including JobKeeper, JobTrainer and HomeBuilder were credited with the industry’s resilience.
This was particularly so with HomeBuilder which is also having a flow-on effect of encouraging home lending.
Denita Wawn, CEO of Master Builders Australia said that HomeBuilder programme supported $18 billion in new home construction and $50 billion in economic activity.
“The Federal Government’s decisive action to implement HomeBuilder in the eye of the COVID storm saved the day for thousands of small builders and tradies, the people they employ and communities they support around the country,” she said.
|RDG||Res Dev Group Ltd||0.04||-9||135||$101.2M|
|VMG||VDM Group Limited||0.003||100||50||$13.9M|
|JLG||Johns Lyng Group||3.15||30||45||$703.4M|
|MPP||Metro Perf.Glass Ltd||0.42||163||45||$77.9M|
|SND||Saunders Intl Ltd||0.575||-6||44||$59.1M|
|SRG||SRG Global Ltd||0.485||83||31||$220.7M|
|PPK||PPK Group Limited||5.87||81||4||$540.8M|
|GWA||GWA Group Ltd||3.54||36||1||$924.8M|
|MGH||Maas Group Holdings||2.58||0||0||$678.3M|
|GNP||Genusplus Group Ltd||1.1||0||0||$165.5M|
|SXE||Sth Crs Elect Engnr||0.58||38||-2||$142.6M|
|NWH||NRW Holdings Limited||3.05||87||-10||$1.3B|
|CIM||Cimic Group Ltd||26.33||13||-25||$8.2B|
|ITG||Intega Group Limited||0.295||28||-34||$129.2M|
|AJL||AJ Lucas Group||0.028||-18||-65||$32.3M|
|DCG||Decmil Group Limited||0.565||-3||-70||$74.7M|
MPP is domiciled in New Zealand where it took a significant hit due to the nationwide lockdowns but was helped with New Zealand’s own wage subsidy and solid trading conditions.
The company said at its half yearly results it was performing better than expected in New Zealand but admitted there was some risk activity may soften in the year ahead.
MaxiTRANS also performed solidly, telling shareholders last November it expected an underlying net profit before tax of $7.2m-$8.3m for H1 FY21. This included a JobKeeper benefit of $4.6 million.
The resources boom, particularly in WA, has benefited several stocks with exposure to the resources sector including NRW Holdings (ASX:NWH), SRG Global (ASX:SRG) and PPK Group (ASX:PPK) which have all gained over 80 per cent in 6 months.
One of the more well known small caps to investors, brick-laying robot specialist FBR (ASX:FBR), is one of the poorer performers, shedding 14 per cent in six months.
The company received solid news in June, signing a West Australian display home builder as a client and noting that its robots had reached commercial lay speed.
But shares began to slide after its latest capital raising in August.
In the last 12 months, the top performer among ASX construction stocks is Resource Development Group (ASX:RDG) which is up 135 per cent.
This company offers construction and engineering services particularly to the resources, infrastructure and energy sectors.
Much of this company’s rise came in the second quarter of the year in which it bought two manganese tenements in Western Australia and announced $26m in contract wins in June – including for an overpass at Fortescue’s (ASX:FMG) Cloudbreak mine site.
VDM Group (ASX:VDM) is the next biggest 12 month gainer, having grown 50 per cent in that time frame.