Category: Stock Market

The A2 Milk Company Ltd (ASX: A2M) share price has risen by 11% since the start of August 2021.

But it’s still down heavily over the last six months and the past year. In the past half-year A2 Milk shares have fallen by 38% and over the last 12 months it has dropped 65%.

Why has it fallen so much?

A2 Milk has seen demand for its products fall significantly.

In the third quarter of FY21, infant nutrition sales in the ANZ segment were $99.5 million and in the cross-border e-commerce channel was $22.1 million, compared to the third quarter of FY20 this was a decline of 56% and 77% respectively.

Management pointed out that these declines compared to the third quarter of FY20 reflected the “extraordinary uplift” in sales last year as the initial effects of the pandemic were beginning to be felt. Sales were down compared to the second quarter of FY21 in the CBEC channel due to actions taken to reduce distributor levels as planned, and ANZ segment sales were down reflecting lower daigou offtake.

In the interest of the long-term health of the A2 brand and the medium-term outlook of the business, management are/were taking more aggressive actions to address its excess inventory which will benefit consumers and the company’s customers, distributors and partners.

The daigou margin support program will cease and it will work with its customers and distributors to improve the dating of inventory. It will improve the freshness of product available in store and online and should improve the competitiveness to consumers, particularly new users.

Rebalancing inventory continued for the fourth quarter of FY21. A2 Milk also warned this may continue into the first quarter of FY22. It is also spending on marketing to ensure it can shift its products.

What could be driving the A2 Milk share price higher?

A2 Milk hasn’t released any market updates recently. And guidance was lowered a few months ago.

It said that it was targeting revenue for FY21 in the range of $1.20 billion to $1.25 billion. Management said an immediate recovery was not expected. The earnings before interest, tax, deprecation and amortisation (EBITDA) margin is expected to be between 11% to 12% (excluding acquisition costs). However, that included a stock provision of between $80 million to $90 million, which was in addition to the $23 million stock provision recognised in the first half of FY21.

But in terms of the A2 Milk share price, there has been media speculation, such as in the Australian Financial Review, which suggests that the food giant Nestle is thinking about launching a takeover bid for A2 Milk.

There hasn’t been an official response from A2 Milk yet. But the AFR reported the company said it “does not comment on media speculation or rumours”.

Time will tell whether an offer eventuates from Nestle for A2 Milk.

At the current A2 Milk share price, it is valued at 24x FY23’s estimated earnings.

The post Here’s what has been moving the A2 Milk (ASX:A2M) share price in August 2021 appeared first on The Motley Fool Australia.

More reading

• Here’s why the A2 Milk (ASX:A2M) share price is up 11% this week
• A2 Milk (ASX:A2M) share price lifts amid trademark stoush
• Why the A2 Milk (ASX:A2M) share price has underperformed the ASX 200 in the last year
• Here are 3 ASX 200 share investors can’t leave alone today
• Here are the top 10 ASX shares today

Motley Fool contributor Tristan Harrison 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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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AGL Energy Limited (ASX: AGL) released its earnings for financial year 2021 (FY21) last week, to the detriment of its share price.

As The Motley Fool Australia reported at the time, the AGL share price slipped after the release of its annual report. It ended the day 5.53% lower than the previous session.

But AGL is just one of the ASX’s big energy providers and comparing its results to those of its peers could be a useful exercise.

One obvious listed competitor to AGL is Origin Energy Ltd (ASX: ORG). While there are marked differences between the two energy companies, the demerger AGL is currently battling towards being one, they still tend to run in the same pack.

So, how do AGL’s earnings stack up against those of Origin? Let’s take a look.

AGL earnings report detailed a $2 billion loss

As mentioned above, the market reacted poorly to AGL’s earnings. Here’s a snapshot of how it performed during FY21:

• Revenue dropped 10% to $10.9 billion
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $1.66 billion –down 18% on that of FY20
• Statutory loss of around $2.05 billion
• Underlying profits of $537 million – FY20 saw $816 million of underlying profits
• 35-cent final dividend, 33% less than the final dividend of FY20

The day after AGL released its earnings, the company’s share price regained some ground before falling once more. It’s currently 5.9% lower than it was before AGL’s release.

Let’s see if Origin offered up any competition.  

How does Origin’s FY21 compare?

Origin didn’t do much better during FY21.

Like AGL, Origin saw its share price drop after it released its earnings on Thursday. Origin’s shares fell 4% on the back of its annual report.

However, Origin’s shares bounced back on Friday to end the session 1.3% lower at Wednesday’s close.

Here’s how it performed:

• Revenue down 8% to around $1.2 billion
• Around $2 billion of underlying EBITDA – 35% less than in FY20
• Statutory loss of approximately $2.2 billion
• Underlying profit of $318 million – FY20 saw around $1.03 billion of underlying profits
• Unfranked 7.5 cent final dividend – 25% less than FY20’s final dividend.

As you can see, there are some noticeable similarities between the two energy companies’ financial years.

Most obviously, both AGL and Origin reported an earnings loss of more than $2 billion. They were both plagued by lower wholesale energy prices and lessening demand due to COVID-19.

However, AGL’s revenue fell further than Origin’s, and it cut its dividend more enthusiastically.

All in all, FY21 wasn’t great for either AGL or Origin. Their significantly differing paths forward will likely make interesting viewing.

AGL share price snapshot

The AGL share price has been underperforming for a while.

As of Friday’s close, it has dropped 41% year to date. It has also slipped 53% since this time last year.

Right now, shares in AGL are worth $7.15 apiece.

The post How does the AGL (ASX:AGL) earnings result compare to Origin? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• When was the worst-ever day on the AGL (ASX:AGL) share price chart?
• The Origin (ASX:ORG) dividend has dropped 20%
• The ASX reporting wrap-up: Origin Energy, Redbubble, Treasury Wine
• Why BHP, Codan, IGO, & Origin shares are dropping

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 Bruce Jackson.

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Some leading ASX dividend shares have reported their FY21 results which showed profit growth as well as much higher dividends.

Reporting season is a useful time to get insights into how a business is performing. A board’s decisions into the dividend declarations can potentially provide insight into the leadership’s thoughts about the strength and medium-term outlook for the business.

Here are two ASX dividend shares that just reported increased dividends:

Inghams Ltd (ASX: ING)

Poultry business Inghams announced that for FY21 its annual dividend would be 16.5 cents per share, fully franked. That was an increase of 17.9% year on year. That represented a dividend payout ratio of 71%. It was in line with its policy of paying between 60% to 80% of underlying net profit after tax (NPAT).

The company experienced both volume growth and operating leverage. Group core poultry volume increased by 4.2% to 446.9kt. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 9.6% to $448.7 million, underlying net profit after tax grew 57.4% to $86.7 million and statutory net profit after tax rose 107.7% to $83.3 million.

The ASX dividend share also managed to reduce its inventory by $30 million. There was excess frozen processed poultry stock that had built up as a result of the effects of COVID-19. Inventory is now in its desired band.

It has been busy making investments for further growth. Inghams made progress with its two new hatcheries, with the Victorian facility now operational and WA expected to commence around the middle of FY22. In addition, the NZ$17 million investment in a new fully cooked processing line in Auckland is “progressing well” and is expected to be completed in the first half of FY22.

Inghams said it expects to see the consumer recovery restart when vaccination rates increase and the current lockdowns are lifted. Volumes are expected to show continued growth with new business across various channels. Feed costs have stabilised.

Citi rates the ASX dividend share as a buy, with a price target of $4.35. It thinks the Inghams share price is valued at 16x FY22’s estimated earnings

Adairs Ltd (ASX: ADH)

Adairs was another business to unveil a much bigger dividend. It announced a final dividend of 10 cents per share, taking the FY21 full year dividend to 23 cents per share. That was an increase of 109% compared to FY20.

It saw group sales rise by 28.5% to $499.8 million (with a 33.2% increase of Adairs online sales). The underlying Adairs gross margin went up 520 basis points to 66.7%. Underlying earnings before interest and tax (EBIT) grew 97.3% to $109.1 million, statutory net profit rose 80.7% to $63.7 million and earnings per share (EPS) jumped 79% to 37.7 cents.

Physical stores are still an important part of the picture for Adairs. That’s why it opened four new homemaker stores and upsized six stores (four homemakers and two regular stores). The company said that the store upsizing strategy continues to deliver a strong return on investment. The FY22 pipeline for new and upsized stores is a net new two to four stores and it’s planning to upsize a further eight to ten stores. That equates to an increase of 8% or more in gross lettable area over the next 12 months.

The ASX dividend share’s new national distribution centre is expected to be fully operational by the end of September 2021, which, once transitioned, is expected to lead to annual savings of around $3.5 million per annum.

Adairs noted that restrictions are impacting sales in FY22. Adairs stores have seen a 27% decline of sales in the first seven weeks of FY22, contributing to a 11.7% drop in total sales (including online sales). Adairs online sales were up 12.9% and Mocka sales were up 16.1%.

The post 2 top ASX dividend shares that just delivered big growth appeared first on The Motley Fool Australia.

More reading

• The Adairs (ASX:ADH) dividend more than doubled in FY21
• Why Adairs, Redbubble, Treasury Wine, & Western Areas are storming higher
• ASX 200 midday update: Cochlear & TPG sink, Inghams jumps
• Adairs (ASX:ADH) share price surges 9% on record FY21 result
• Inghams (ASX:ING) share price leaps 7% as FY21 profits double

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Western Areas Ltd (ASX: WSA) share price is shaping up to be one of the hottest merger and acquisition (M&A) candidates on the ASX.

The potential takeover frenzy was unleashed when IGO Ltd (ASX: IGO) and Western Areas confirmed they were in preliminary merger discussions.

Is BHP next to launch a takeover bid for Western Areas?

The news sparked speculation that BHP Group Ltd (ASX: BHP) could enter the fray. Both Western Areas and IGO are key suppliers to BHP’s Nickel West operations, reported the Australian Financial Review.

BHP’s chief executive Mike Henry has made it known that he has big ambitions when it comes to nickel. He recently signed an agreement with Tesla Inc (NASDAQ: TSLA) to supply nickel to Elon Musk’s electric vehicle (EV) juggernaut.

BHP will need to invest big in Nickel West and the industry is seen as ripe for consolidation thanks to the EV revolution.

IGO could force BHP’s takeover hand

Euroz Hartleys speculated the potential M&A between IGO and Western Areas could force BHP’s hand, reported the AFR. IGO may be looking to give itself commercial leverage when dealing with giant partners like BHP.

Nickel West relies on smaller suppliers like IGO and Western Areas for around 30% of its ore. The quality of the ore from both miners are key to the efficiency of BHP’s nickel smelters. Merging the two smaller miners could give IGO an upper hand in dictating terms.

Three-way takeover battle for Western Areas

But this may soon turn into a three-horse race for Western Areas. The takeover target revealed on Friday that Fortescue Metals Group Limited’s (ASX: FMG) high profile founder Andrew Forrest has entered the fray.

His investment vehicle, Wyloo Consolidated Investment, has gone substantial and taken a 5.3% stake in Western Areas.

Perhaps it’s a bit of payback after BHP outbid him for Canadian nickel miner Noront Resources.

Foolish takeaway

It’s interesting that Twiggy Forrest is such an active player in the M&A scene too. His interest isn’t confined to mining as he went added to his position in Huon Aquaculture Group Ltd (ASX: HUO) following a takeover bid by JDS.  

But not all experts believe that BHP will have to go into the running for Western Areas. They point to comments by Henry that nickel doesn’t need to make up a big part of the miner’s portfolio, as long as BHP becomes an important player in the sector.

Regardless of how the takeover battle for Western Areas pans out, most will agree that we have not seen the last of M&As in the nickel sector.

The post Can the Western Areas (ASX:WSA) takeover prompt BHP (ASX:BHP) to go nickel shopping? appeared first on The Motley Fool Australia.

More reading

• After ASX mining shares crashed last week, top brokers are backing this miner
• These were the worst performing ASX 200 shares last week
• Western Areas (ASX:WSA) share price jumps 10% after Twiggy Forrest buys stake
• What’s going on with ASX lithium shares today?
• Why Adairs, Redbubble, Treasury Wine, & Western Areas are storming higher

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, and Independence Group NL. 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 Bruce Jackson.

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ASX mining shares took one of their biggest drubbings last week, but top brokers reckon this is the time to buy this ASX miner.

The mining heavy materials sector was the worst performer on the ASX in the past week. The BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price led the falls.

Falling commodity prices were a large driver for the losses as the US dollar rallied on safe haven demand.

South32 share price could appeal to bargain hunters

But this could be the time to be bargain hunting. And several leading brokers reckon the South32 Ltd (ASX: S32) share price should be on your shopping list after it posted its full year results.

The analysts at Macquarie Group Ltd (ASX: MQG) is one that is recommending the ASX miner as a buy.

While the diversified miner’s earnings were inline with the broker’s forecast, its cash flow was better than Macquarie had anticipated.

Stronger cash and bigger dividends

“The strong result drove the additional capital returns to shareholders. S32 declared a final dividend of US¢5.5, which included a US¢2.0 special dividend,” said the broker.

“The total payout for the year of US¢6.9 was 60% higher than we had anticipated. S32’s share buy-back has been increased by US$120m with US$252m in total remaining.”

Macquarie’s 12-month price target on the South32 share price is $4 a share compared to the miner’s Friday closing price of $2.78.

Missing expectations but hitting targets

But not everyone was impressed by South32’s dividend. The payout missed JPMorgan’s estimate of US6 cents a share. What’s more, the miner’s FY22 cost guidance for Worsley and Illawarra was above what the broker was expecting.

Nonetheless, these negatives weren’t enough to convince JPMorgan to change its “overweight” recommendation on the shares as South32 still looks cheap.

“We believe S32 offers a compelling investment proposition as an inexpensive non-iron ore diversified miner,” said JPMorgan.

“We also expect consensus to move higher on aluminium price strength. We retain our Overweight rating based on attractive P/NPV of 0.79x, strong balance sheet, and solid ~7% yield.”

South32 share price boosted by its strong balance sheet

South32’s attractive valuation was not lost on Morgan Stanley either. Even though the miner also failed to meet its lofty US7.9 cent a share dividend expectation, the broker remains a fan.

Morgan Stanley pointed to South32’s strong balance sheet and better than expected cash flows as reasons to buy its shares.

The broker reaffirmed its “overweight” recommendation on the South32 share price and $3.40 a share price target.

The post After ASX mining shares crashed last week, top brokers are backing this miner appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the 3 top trading ASX 200 shares this Friday
• What’s going on with ASX lithium shares today?
• Fortescue (ASX:FMG) share price lifts despite weaker iron ore prices
• BHP (ASX:BHP) share price slides for 4th straight session, down 14% this week

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, Macquarie Group Limited, Rio Tinto Ltd., and South32 Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re in the process of building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone right now:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a high quality real estate investment trust with a focus on properties with specialist use, limited competition, and low substitution risk.

Among its portfolio you will find bus depots, police and justice services facilities, and childcare centres. The latter is its main focus, with the Charter Hall Social Infrastructure REIT the largest owner of early learning centres in Australia. At the last count, it actively partnered with 35 high quality childcare operators.

The Charter Hall Social Infrastructure REIT was on form in FY 2021. It recently released its full year results and reported a 13.5% increase in operating earnings to $58 million. It also revealed that it ended the period with a weighted average lease expiry of 15.2 years and 73.2% of its properties on fixed rent reviews.

Goldman Sachs is a fan. It currently has a conviction buy rating and $3.81 price target on the company’s shares. The broker expects its shares to provide attractive yields of ~4.5% in FY 2022 and ~4.7% in FY 2023.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Australia’s oldest bank has returned to form this year following a tricky period during the pandemic. This led to the company reporting a bumper profit result in the first half, which has positioned it to return significant funds to investors this year.

In fact, last week the team at Goldman Sachs tipped the bank to return $5 billion to shareholders in the near future.

Commenting on changes to its earnings estimates, Goldman said: “We move our FY21E/22E/23E EPS by +0.7%/+4.3%/+7.2%, driven by i) improved balance sheet momentum, ii) lower 2H21E BDDs, and iii) our assumption of an A$5bn off-market buyback in light of its surplus capital and franking, partially offset by iv) lower NIMs, and vi) higher near term expenses.”

Goldman Sachs has a buy rating and $29.93 price target on the bank’s shares. It is also forecasting dividends per share of 116 cents in FY 2021, 128 cents in FY 2022, and 141 cents in FY 2023. Based on the latest Westpac share price of $25.76, this implies yields of 4.5%, 5%, and 5.5%, respectively.

The post Analysts name 2 ASX dividend shares with attractive yields as buys appeared first on The Motley Fool Australia.

More reading

• August has been a good month so far for the Westpac (ASX:WBC) share price
• These ASX 200 bank experts are forecasting a bumpy ride for our economy
• Westpac (ASX:WBC) share price rises after broker tips $5bn buyback
• Top brokers name 3 ASX shares to buy today
• ASX 200 midday update: Westpac update, Breville and Magellan sink

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Bruce Jackson.

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Reporting season went up another gear last week when an even larger number of companies released their latest results.

Three of the best results from last week are summarised below. Here’s what they reported:

CSL Limited (ASX: CSL)

Despite facing a number of headwinds, this biotherapeutics giant delivered a full year result ahead of expectations last week. For the 12 months ended 30 June, CSL reported a 9.6% increase in constant currency revenue to US$10,026 million and a 10% lift in profit after tax to US$2,307 million. The latter compares to its guidance of 3% to 8% growth. And while plasma collection headwinds are expected to weigh on its performance in FY 2022, leading to a decline in profit, this was largely expected by the market. Overall, the result went down well with Morgans. In response, the broker retained its add rating and lifted its price target on the company’s shares by 8% to $324.40.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price raced to a record high last week after investors responded positively to its full year results. In FY 2021, the pizza chain operator delivered a 14.6% increase in network sales to $3.74 billion and a 29.2% jump in net profit after tax to $188.2 million. This was driven by new store openings and solid same store sales growth across its ANZ, European, and Asian operations. Positively, FY 2022 has started strongly, with network sales up 7.7% year to date compared to the same period last year. The team at Citi were impressed. In response, the broker retained its buy rating and lifted its price target to $159.05.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price also jumped to a record high last week following the release of its full year results. In FY 2021, the healthcare technology company delivered a 19.5% increase in revenue to $67.9 million and a 33.7% jump in net profit after tax to $30.9 million. This was driven partly by the implementation of a number of multi-year contract wins from major healthcare institutions. Morgans was happy with its result. It lifted its price target on the company’s shares from $49.00 to $62.00. However, for valuation reasons, it has held firm with its hold rating. The Pro Medicus share price ended the week at $65.85.

The post 3 of the best ASX results from week three of reporting season appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Brokers name 3 ASX shares to buy today
• CSL (ASX:CSL) share price lifts despite UniSuper divestment threat
• CSL (ASX:CSL) share price charges higher on bullish broker note
• Top brokers name 3 ASX shares to sell today

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. owns shares of and has recommended CSL Ltd. and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price is having an August to make investors smile.

At close of trade on Friday, shares in the Australian big four bank were trading for $25.76 – down 0.23%. For context, the S&P/ASX 200 Index (ASX: XJO) ended 0.03% lower.

Since the beginning of the month however, Westpac shares have risen 4.93% while the benchmark index is 0.85% higher.

This green August comes after a so-so July. The Westpac share price fell 5% the prior month despite a rising overall market.

Let’s see what’s been affecting Westpac this month.

The month so far for Westpac

Shockwaves from the biggest M&A in Australian history, the $39 billion acquisition of Afterpay Ltd (ASX: APT) by Square Inc (NYSE: SQ), may have extended to the Westpac share price.

As Motley Fool previously reported in October last year, Australia’s oldest bank revealed a partnership with Afterpay which would see Westpac provide its banking-as-a-service platform to the buy now, pay later contender.

The offering was expected to be symbiotic – Afterpay gets white-labelled bank accounts and Westpac extracts revenue from the payments shift. However, that was before US-based payments giant Square entered the scene.

Now Westpac has been unnerved by Afterpay shacking up with the competition. Square commands a larger market capitalisation than the Aussie bank, at US$121 billion. The company is making a conscious move to disrupt traditional banks with its business deposits and loans.

Westpac also announced the sale of its life insurance business to Dai-ichi Life Group subsidiary, TAL.

TAL will pay $900 million for the business. It will also enter a strategic alliance to provide Westpac’s Australian customers with the service for another 20 years.

According to Westpac, the divestment “releases significant capital”.

Westpac has lost a total of $1.3 billion (post-tax) on the sale. However, it will add around 12 basis points to Westpac’s Level 2 common equity Tier 1 (CET1) capital ratio. 

The big bank will record a post-tax loss of $300 million for the life insurance business in its financial year 2021 results. The immediate loss mainly relates to transaction and separation costs.  

Westpac share price falls on third quarter update

The Westpac share price slid after the release of its third-quarter update in August.

The bank revealed a CET1 ratio of 12% on a reported basis and 12.5% on a pro forma basis. As a result, the Westpac Board indicated it will consider a further return of capital to shareholders. An update on this will be made with its FY 2021 results later this year.

As well, Westpac gave an unfavourable forecast with its update. The bank once again reiterated that it was facing net interest margin (NIM) headwinds and therefore expected its second-half NIM to be lower than what was achieved in the first half. It also reaffirmed its expectation for its expenses to be higher year-on-year in FY 2021.

Westpac share price snapshot

Over the past 12 months, the Westpac share price has increased by 49.3%. It has outperformed the benchmark ASX 200 by about 27 percentage points. Year-to-date it has risen 31.0% to the ASX 200’s 11.6% lift.

Westpac has a market capitalisation of $94.7 billion.

The post August has been a good month so far for the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

More reading

• These ASX 200 bank experts are forecasting a bumpy ride for our economy
• Westpac (ASX:WBC) share price rises after broker tips $5bn buyback
• Top brokers name 3 ASX shares to buy today
• ASX 200 midday update: Westpac update, Breville and Magellan sink
• Westpac (ASX:WBC) share price falls on margin pressure concerns

Motley Fool contributor Marc Sidarous owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some quality ASX shares that may be worth thinking about this weekend.

They are businesses that are producing earnings growth and have reached a strong market share.

These two ideas below may be attractive long-term opportunities if they can keep growing over time:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

This is an exchange-traded fund (ETF) that is about giving investors exposure to 50 of the biggest technology businesses in Asia outside of Japan.

The West has plenty of big technology names like Microsoft, Apple and Amazon. But there are also some giants in Asia (excluding Japan).

Looking at the biggest 10 positions in the portfolio at the last update, they were: Taiwan Semiconductor Manufacturing, Samsung Electronics, Alibaba, Tencent, Sea, Infosys, Meituan, JD.com, Pinduoduo and Naver.

Some of these are the biggest e-commerce retailers and the biggest global gaming businesses. Samsung is one of the biggest smartphone, TV and appliance makers. These are businesses with big market shares.

It has annual management fees of 0.67%. That’s higher than quite a few index-based ETFs but lower than many active managers who charge 1% per annum, or more.

BetaShares Asia Technology Tigers ETF has been falling in recent months. At 31 July 2021 it had fallen 11.3% over the month. It has fallen another 6% since then.

Sometimes a drop in prices can be an opportunity to think about.

Despite that decline, since September 2018 the ASX share has seen an average net return per annum of 23%. But past performance is no guarantee of future performance.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara provides software, its clinical functions for breast screening clinics provide feedback on breast density, compression, dose and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement, and patient tracking.

The ASX share has the Volpara breast health platform, its AI software platform, which is a suite of software solutions that collects and analyses information to better understand a patient’s breast cancer risk, while evaluating image quality and workflow improvement opportunities.

These capabilities are being extended to lung cancer screening.

The company has managed to increase its coverage of US women being screened to 33% in the three months to 30 June 2021. That was an improvement from 32% in the previous quarter.

Volpara’s annual recurring revenue (ARR) is now around US$19.2 million and client churn is low. In the latest quarter, its average revenue per user (ARPU) was US$1.42. But some sites were seeing ARPU was US$5.87.

The sale of multiple products to new clients is increasing ARPU. Upselling to existing clients is another opportunity for the ASX share to grow ARPU. Volpara continues to look for acquisition opportunities that can improve its offering or grow ARPU.

Its FY22 focus is risk and genetics. Volpara says that it wants to ensure that all women get extremely accurate risk assessment, go onto the right pathways and are monitored with world-class detection.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Deteriorating iron ore prices and sharp a selloff in the lithium sector has sent the Mineral Resources Limited (ASX: MIN) share price down 19% in August.

July bulls turned to August bears

Mineral Resources is a diversified mining business, offering the likes of mining services for some of the world’s largest mining companies, in addition to its own commodity portfolio which includes iron ore and lithium.

July was a glorious month for the Mineral Resources share price, rallying to an all-time high of $65.38 and closing the month with a year-to-date return of 68.14%.

The bullish performance of Mineral Resources last month was supported by firm iron ore prices, trading well above US$220/tonne and the surging lithium sector.

ASX lithium shares such as Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) would mark fresh all-time highs almost on a weekly basis in July and early August, surging to year-to-date returns of well over 100%.

Unfortunately, the opposite is now unravelling.

According to Fastmarkets MB, iron ore prices tumbled US$20.73/tonne on Thursday to an 8-month low of $132.66/tonne.

This means iron ore prices have tumbled more than 40% from May highs of ~US$230/tonne.

Furthermore, ASX lithium shares have taken a sharp turn for worse in the past week, with leading names like Pilbara Minerals and Orocobre down 7% and 6.65% respectively on Friday.

An article from The Motley Fool US flagged that Bank of America slapped an underperform rating on two of the biggest lithium mining companies, Albemarle and Livent.

This could have an impact on the Mineral Resources share price, given the company operates a 40:60 lithium joint venture with Albemarle.

Bank of America said that “both stocks are benefiting from “significant hype” regarding long-term demand for lithium metal, but according to the analyst, they may not be able to deliver on that hype.”

Mineral Resources share price snapshot

The year-to-date performance of Mineral Resources has halved from 68% at the end of July to 31% by Friday, 20 August.

The post August hasn’t been a great month for the Mineral Resources (ASX:MIN) share price appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• What’s going on with ASX lithium shares today?
• Why the Mineral Resources (ASX:MIN) share price fell 15% this week
• Here are the top movers on the ASX 300 today
• The Mineral Resources (ASX:MIN) share price is down 8% on Thursday

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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