CWP seems cheap and well positioned, page-3

As hoped, CWP gave positive guidance for FY 21.
First, as a sign that the company was quite optimistic, it increased its payout ratio in FY 20 to 73 % (from 50 %). The stock has now a dividend yield of 3.7 % based on the full year dividend paid in FY 20 (19 c).

The company also mentioned that it expects "higher earnings in FY 21". This is mainly to reflect the strong start of the year FY 21.
"Sales in WA in FY 21 to date increased by 100 % on the level experiences in FY 19".
They also mentioned that margin began to improve in Perth, thanks to better pricing.
They are more cautious about other states, but seem to be satisfied with the level of sales also in the other states. In Victoria, sales were steady thanks to "targeted marketing initiatives".

However, the company remains cautious and explain the rather good sales situation by the level of support both from Federal and State government. In WA, these cumulated supports represent 10 % of the median price and explain the strength of the market, together with rather moderate prices and a better mining sector.

Overall, the market conditions are quite good now for CWP.
The main risk is that the sector depends quite a lot on government support.