Building Materials

Thoughts on Q2/H1 trading

  • Sectors : Building Materials
  • Companies : Breedon Group | Saint-Gobain Group | Buzzi Unicem | Tyman | Heidelberg Materials | Kingspan Group | CRH | Holcim


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Breedon Group OUTPERFORM 22/11/19 Neutral 25/10/17 109p
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 2188c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 4963c
Heidelberg Materials NEUTRAL 04/02/20 Outperform 16/06/17 7222c
Holcim OUTPERFORM 20/04/20 Neutral 09/01/19 5382chf
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 8366c
Saint-Gobain Group OUTPERFORM 29/01/21 Neutral 02/11/20 5624c
Tyman OUTPERFORM 24/03/21 N/A N/A 448p


A steady stream of positive ad hoc statements highlights the strength of Q2 trading in the building materials sector. Momentum has continued to build in most markets despite supply chain disruption and steep cost inflation. Robust pricing appears to be fully compensating, and the much-feared margin squeeze has not materialised. Whether that can be sustained into H2 and 2022 remains to be seen, but for now that battle is being won and the risk to sector earnings remains firmly to the upside in our view.

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Jul 7 2021, 11:00 IST/BST