Day: July 28, 2022

‘Power and resilience’: Hipages share price leaps 14% on revenue boost

A Cimic construction worker leaps high in the air on a building site.A Cimic construction worker leaps high in the air on a building site.

The Hipages Group Holdings Ltd (ASX: HPG) share price soared today amid the company’s revenue leaping in the fourth quarter of FY22.

The Hipages share price surged 13.6% to finish the session at $1.295. For perspective, the S&P/ASX 200 Communication Services Index (ASX: XTJ) jumped 0.61% today.

So what did Hipages report today?

Hipages share price lifts amid 9% revenue boost

It was onwards and upwards for the Hipages share price today following the release of the company’s Q4 FY22 activities report. Highlights included:

  • Total revenue leapt 9% on the prior corresponding period (pcp) to $15.8 million
  • Average annual revenue per unit (ARPU) surged 10% to $1,806
  • Hipages Australia ARPU soared 16% to $1,904
  • Subscription tradies leapt 11% on the pcp to 34,600
  • $13.2 million cash and funds on deposit, no debt

What else did Hipages report?

Hipages is an online tradie marketplace and software-as-a-service (SaaS) provider that connects homeowners and companies with tradies.

Tradie registrations are rising and job numbers and churn are normalising following the COVID-19 pandemic, according to Hipages.

The company delivered free cash flow of $0.3 million in the fourth quarter, compared to an outflow of $2.5 million in the previous quarter.

Hipages highlighted its efficient business model is underpinning favourable free cash flow and balance sheet strength.

Management commentary

Commenting on the results that boosted the Hipages share price today, CEO and co-founder Roby Sharon-Zipser said:

For Hipages Group to continue to grow in such a challenging environment, while generating positive free cash flow and closely managing our expenses, highlights the power and resilience of our business model.

We will continue to invest in our products and technology and develop new expansionary services to enhance the customer experience and expand our addressable market.

Looking ahead

Hipages is expecting rising inflation and interest rates to bring “balance to marketplace”. With this in mind, Hipages predicts tradies will be more reliant on the company’s platform to source jobs.

On 25 August, Hipages will release its FY22 full-year results and update the market further on its outlook for FY23.

Hipages share price snapshot

The Hipages share price has dived 59% in the past year and more than 66% year to date.

However, in the past month, the company’s share price has lifted almost 28%.

Hipages has a market capitalisation of about $169 million based on the current share price.

The post ‘Power and resilience’: Hipages share price leaps 14% on revenue boost appeared first on The Motley Fool Australia.

Should you invest $1,000 in Hipages Group Holdings Ltd. right now?

Before you consider Hipages Group Holdings Ltd., you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hipages Group Holdings Ltd. wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fundie reveals best ASX 200 sector to ‘generate defensive growth and help future proof portfolios’

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.

The market landscape has shifted unanimously to a more risk-off environment in FY22. Indeed, the macro-thematic now includes inflation, central bank tightening and prospects of a recession.

The distribution of possible outcomes for the global economy is even wider. Alas, managers running client money reckon it’s time to add resiliency into portfolios for H1 FY23.

One way to diversify within singular asset classes like the equities, such as in the S&P/ASX 200 Index (ASX: XJO), is to concentrate on various sectors that are sensitive or not to the business cycle.

‘Defensives’ as they are known, often provide a layer of resiliency and downside protection in choppy markets, especially on a forward looking basis.

ASX 200 Healthcare shares to dominate

The healthcare sector will retain its position on the mantlepiece as the top performing sector in FY23, according to Tribeca Investment Partners portfolio manger Jun Bei Liu.

Liu said this posture stems from 3 factors, “stabilising interest rate expectation, the opportunity for outsized near term growth and its structural growth prospects,” according to Livewire.

COVID-19 was also a major anomaly for the defensive sector, causing a huge backlog and pent-up demand.

“Many healthcare companies will see a significant return to growth from the next half,” Liu added.

“[B]ut it could take as long as 18 months to two years to clear the enormous backlog that has been built up over the past two years.

Moreover, with the prospect of economic downturn threatening consumer spending and aggregate demand, healthcare companies are largely agnostic to these challenges.

In fact, healthcare is considered a defensive sector that is largely insensitive to the business cycle.

It therefore comes as little surprise to see Liu advocate for the sector in the forward looking regime.

The sector has already caught a bid in FY23, with the S&P/ASX 200 Health Care Index (ASX: XHJ) climbing nearly 6% higher over the past month. This contrasts with the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of 2.6%.

It has now clawed back losses incurred this year to date, as seen below.

TradingView Chart

The post Fundie reveals best ASX 200 sector to ‘generate defensive growth and help future proof portfolios’ appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

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*Returns as of July 7 2022

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Pilbara Minerals share price lifts amid 50% quarterly production boost

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

It was a pleasing day for the S&P/ASX 200 Index (ASX: XJO) on Thursday. The ASX 200 closed at 6,889.7 points, up a healthy 0.97% for the day. But it was an even better day for the Pilbara Minerals Ltd (ASX: PLS) share price.

ASX lithium stock Pilbara ended up finishing this Thursday’s trading at $2.73 a share, up a robust 6.23%. That came after this lithium flagship closed at $2.57 a share yesterday and opened at $2.63 this morning.

What was interesting about Pilbara’s day was the release of the company’s June quarterly activities report. The report, covering the three months to 30 June 2022, was released at 2.56 pm. So it’s fair to say that it didn’t have much of an impact on Pilbara’s stellar day.

It may have been responsible for ticking the company’s share price up from $2.70 to $2.73 (which occurred after the release of the report). But Pilbara had clearly banked much of its daily gains before this time, so go figure.

What did Pilbara Minerals report today?

Even so, it was objectively a pleasing report for the company. Pilbara reported that it had produced 127,236 dry metric tonnes of lithium spodumene concentrate over the June quarter.

That was a substantial 56% increase from the 81,431 tonnes the company reported for the preceding quarter covering the three months to 31 March 2022.

This production included the first concentrate from the company’s Ngungaju Plant.

This has enabled Pilbara to book a total of 377,902 dry metric tonnes of spodumene concentrate for the full 2022 financial year. That was again a 35% increase over the 58,383 tonnes the company recorded for FY 2021.

Spodumene shipments also rose over the quarter, increasing 127% from the 58,383 tonnes for the March quarter to the 132,424 tonnes recorded for the quarter ending 30 June.

Pilbara recorded an average sales price of US$4,267 per dry metric tonne over the June quarter, another rise over the previous quarter, in which Pilbara was only able to achieve an average of US$2,650 per tonne.

In terms of outlook, Pilbara had this to say:

Market demand for battery raw materials remained strong, with Chinese lithium prices stabilising close to all-time highs…

During the June Quarter 2022… Pilbara Minerals… continued to progress work programs and activities to increase spodumene concentrate production at the Pilgangoora Project, in response to surging global demand for lithium raw materials…

So we can’t say that this report was behind the stellar performance of the Pilbara Minerals share price this Thursday. But it certainly didn’t hurt.

At the last Pilbara share price, this ASX 200 lithium stock had a market capitalisation of $7.65 billion.

The post Pilbara Minerals share price lifts amid 50% quarterly production boost appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

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*Returns as of July 7 2022

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Broker tips 26% upside for Rio Tinto share price post-results

a group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

a group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

The Rio Tinto Limited (ASX: RIO) share price underperformed on Thursday after investors gave the miner’s half-year results a lukewarm response.

And while the mining giant’s shares finished the day 0.75% higher at $97.70, its peers recorded much stronger gains.

For example, the S&P/ASX 200 Resources index charged 2.35% higher during the session.

Is the Rio Tinto share price still a buy?

According to a note out of Goldman Sachs, its analysts have retained their buy rating with a slightly trimmed price target of $122.90.

Based on the current Rio Tinto share price, this implies potential upside of almost 26% for investors over the next 12 months.

What did the broker say?

Goldman acknowledges that Rio Tinto disappointed on a number of items such as consensus EBITDA and dividend estimates during the first half.

Commenting on the dividend, the broker said:

The interim dividend of US$2.67/sh was lower than expected (50% payout vs. GSe 75% payout) with RIO painting a cautious outlook for global commodity demand, although the company believes China can introduce more easing measures in 2H.

Nevertheless, its analysts have seen enough to remain bullish. Particularly given its very attractive valuation.

Despite a weakening near term outlook for iron ore and base metals in 2H22, and concerns over future growth (Pilbara heritage and replacement mines, Simandou, Oyu Tolgoi, Resolution) and uncertainty over decarbonisation capex, we rate RIO a Buy.

This buy rating is based partly on its “compelling valuation.” Goldman highlights:

Trading at c. 0.75x NAV (A$126.4/sh), c. 4.0x 2023E EBITDA at GSe base case, c. 4.2x at spot. Pricing in flat Fe of ~US$55/t (NAV = share price) or US$60-65/t at spot commodities to achieve the 25yr EV/EBITDA average of ~6.5x over the next few years.

The broker also highlights that the current Rio Tinto share price suggests potential for big dividends in the near term. It is forecasting a “FCF/dividend yield in 2022E (c. 10%/8% yield) & 2023E (c. 11%/8% yield).”

The post Broker tips 26% upside for Rio Tinto share price post-results appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rio Tinto Limited right now?

Before you consider Rio Tinto Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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