Much to like in the Hardies update.
But you are paying 25x for a business in a cyclical industry (even if their market share gains are structural) into a tightening cycle.
Skinny yields, lots of enthusiasm.
[NB, revisiting the note. It is a magnificent business, and one we’ve been wrong not to own. Fair to say we (for years) underestimated the consumer preference shift towards their product suite, which continues to take share. Still, there are plenty of other good, compelling opportunities in the local market, that are attractively priced and do not come with the same cyclicality risks, and whilst it pays to do a post-mortem on the fish-that-get-away, you do eventually have to turn away].
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