JHX - Takeaways from the Truist Securities Industrials & Services Conference

研报英文原文证据摘录

JHX - Takeaways from the Truist Securities Industrials & Services Conference

en the products. We note JHX also raised prices for its Fiber Cement, but the increase

Short Interest Ratio/% Of Float 4.9% was substantially smaller. The company has also started to roll out its Trim Over installation

Enterprise Value ($M) $18,651 method beyond the Midwest and into North Carolina which helps drive install costs lower

Cash & Equivalents ($M) $269 and when combined with its distribution package further narrows the affordability gap. These

efforts have helped narrow the spread between vinyl and fiber cement on an installed basis Total Debt ($M) $4,535

by 50% in some cases. Fiber cement will always be a premium product.

6 Page Document High Incremental Margins Could Drive Substantial Earnings Growth if Unit

Growth Accelerates. Management commented that JHX's segments benefit from strong

contribution margins with 40% incremental margins in Siding & Trim and 30% for Deck,

Reasons for this report Rail & Accessories. This could result in significant earnings growth if volumes return to their

historical growth rates.

✓ Truist Securities Conference Takeaways

Sales Force Integration Complete; New Incentive Program Should Drive Synergies.

Management commented that the two sales forces have officially completed their integration

as of April. They have also changed their sales incentive program to compensate individuals

based on sell-through and total dollars rather than feet which is similar to AZEK's

compensation structure prior to the merger. We think these goals when combined with equity

distributions across the entire sales force should encourage the revenue synergy generation.

Highlighted $1 Billion Repair & Remodel Opportunity in the Northeast and Northwest

for Fiber Cement...