In morning trade, the Aussie Broadband Ltd (ASX: ABB) share price has been a positive performer.

At the time of writing, the internet service provider’s shares are up 4.5% to $3.08.

Why is the Aussie Broadband share price pushing higher?

This morning Aussie Broadband announced the launch of a new white label solution for major retail brands.

This will allow retail brands to sell Aussie Broadband’s internet and VoIP services under their own brand. Aussie Broadband will also provide customer support, service delivery, account and credit management.

Positively, the company has already signed its first white label customer – a large retail business with more than 3 million customers across Australia.

While the company is unable to disclose the name of the customer for commercial reasons, it is worth noting that Kogan.com Ltd (ASX: KGN) recently surpassed 3 million customers in Australia.

As part of this agreement, Aussie Broadband expects to transfer more than 25,000 of the customer’s existing broadband and VoIP services to its network. The first tranche of customers will transfer to the company’s services in early FY 2022.

Aussie Broadband’s Managing Director, Phillip Britt, commented: “We have built scalability into our network and support platform to take on additional white label customers as it is an important pillar in Aussie Broadband’s growth strategy.”

“The market is evolving as we’re seeing a number of well-known Australian retail brands across several industries either looking to expand into telecommunication services under their own label, or needing a higher quality customer experience for their existing telco customer base to match their brand promise.”

“Our excellent reputation in the industry and our new white label capability makes Aussie Broadband a logical choice for any major retailer looking for a high-quality telco product. It gives us access to an alternative channel to grow our market share with residential and business connections,” he added.

The release advises that its new white label capacity provides NBN, Opticomm, and VoIP services, allowing white label customers to choose elements from Aussie Broadband’s product cycle that suit their needs.

Connections update

In addition to the above, the company provided an update on its connections.

During the third quarter of FY 2021, the Telstra Corporation Ltd (ASX: TLS) rival reported net broadband additions of 30,424. This brought its total connections to 373,058 and does not include the aforementioned white label deal.

Mr Britt said: “The quarterly increase in connections is a testament to our strategy and core offering, providing high quality customer support and enabling innovative, technology-led solutions to drive efficiency in the company. We continue to scale the business with our new white label solution which will boost our market share and allow us to increase the number of connections on our network.”

More reading

• Regis Resources (ASX:RRL) announces $900m Tropicana Gold Project acquisition
• Why the Sheffield Resources (ASX:SFX) share price is on watch
• 2 exciting small cap ASX shares to buy
• Is the Webjet (ASX:WEB) share price a bargain buy?
• Tesla stock: headed to $1,071?

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 Aussie Broadband Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Telstra Limited. The Motley Fool Australia has recommended Aussie Broadband 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 Regis Resources Limited (ASX: RRL) share price won’t be going anywhere on Tuesday.

This morning the gold miner requested a trading halt prior to the market open.

Why is the Regis Resources share price in a trading halt?

Regis Resources requested a trading halt so that it can undertake an equity raising to fund a major acquisition.

According to the release, the company has signed a conditional binding agreement with IGO Ltd (ASX: IGO) to acquire its 30% interest in the Tropicana Gold Project for A$903 million.

The release notes that Tropicana is a low cost, high margin, top five producing Australian open-pit and underground gold mine located in the Albany-Fraser Orogeny in Western Australia. It is one of the largest gold mines in Australia with gold production of 463koz in FY 2020 and guidance of 380koz – 430koz in FY 2021.

Management notes that the acquisition diversifies Regis’ existing production base with a non-operated interest in a high quality, low cost, high margin gold asset.

It also comes with a world class joint venture partner in AngloGold Ashanti. It is a proven gold miner with a successful track record of developing and operating Tropicana and other underground assets.

Regis’ Managing Director and CEO, Jim Beyer, commented: “This is a genuinely transformational transaction for Regis and one that delivers on our strategic objectives to grow as a safe, responsible, reliable, long life, low cost gold producer, generating strong financial returns.”

“Diversifying the Company’s robust portfolio through the acquisition of a 30% interest in the Tropicana operation will deliver significant improvements in the Company’s Resources, Reserves and annual production, along with providing additional immediate cashflows, all of which adds to the strength of our platform for undertaking further organic and inorganic growth activities.”

Equity raising

Regis intends to fund the acquisition through a combination of a fully underwritten equity raising of up to A$650 million.

This comprises a A$200 million institutional placement and an accelerated pro rata non-renounceable A$450 million entitlement offer. The company has also secured a new A$300 million loan facility.

All new shares offered will be issued at a price of A$2.70 per new share, which represents a 14.8% discount to its last close price.

Shareholders of IGO have responded positively to the news. The IGO share price is up 4% in morning trade.

More reading

• ASX 200 jumps, Cleanaway’s treasured acquisition, Afterpay soars
• Why the Regis Resources (ASX:RRL) share price is in focus
• Top ASX shares to buy in April 2021
• Why Corp Travel Management, IGO, Limeade, & ResApp are tumbling lower

Motley Fool contributor James Mickleboro 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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Sheffield Resources Ltd (ASX: SFX) shares will be on watch following news of an upper management reshuffle this morning. At yesterday’s market close, the Sheffield share price was trading at 38.5 cents, representing a 3.75% drop from Friday’s closing price.

In an announcement to the ASX this morning, the mineral exploration company advised its managing director and CEO has stepped down, while its commercial director has taken on the role.

Let’s take a closer look at Sheffield’s new upper management team.

Management transition

The Sheffield share price will be in focus today after the company advised its managing director and CEO, Bruce McFadzean, will step down from the roles on 1 July 2021. He has held the top position at the company since 2015.

McFadzean will continue with Sheffield as a non-executive director.

Filling his boots will be Bruce Griffin, who is currently Sheffield’s commercial director. Griffin will take on the role of executive chair.

Griffin has held leadership positions in a range of companies and consultancies in the mineral sands industry. According to Sheffield’s release, the role of executive chair will allow the company to best utilise Griffin’s industry experience. 

The final piece of the shake-up involves Sheffield’s current non-executive chair John Richards’ new job. He will be taking up the newly created role of lead independent director.

New management commentary

Mr Richards offered his congratulations to McFadzean, noting the key role he played in delivering the company’s Yansteel joint venture. He also looked to the company’s future, as Griffin will be leading Sheffield into its up-and-coming Thunderbird project.

Bruce [McFadzean] worked tirelessly over a long period to identify and then execute the transaction which provides the equity component of the Thunderbird project development and the Board expresses its sincere thanks for those efforts. We look forward to continuing to rely on Bruce’s knowledge of the project and his relationships with key stakeholders as a Non-Executive Director.

As we move forward with Yansteel to building and operating Thunderbird, we are extremely fortunate to have someone of Bruce Griffin’s experience and stature to take over and I look forward to working with him through the next stages of Sheffield’s development.

Mr McFadzean said:

I look forward to working with our JV partner Yansteel under the leadership of a minerals sands industry expert Bruce Griffin. We are now well structured for the next leg of the Thunderbird journey towards production.

Mr Griffin said:

I look forward to building on the strong foundations Bruce has built at Sheffield as we complete the financing, build and then operate Thunderbird with our partner Yansteel.

 Sheffield share price snapshot

The Sheffield Resources share price has had a roaring time on the ASX lately.

Year to date, it’s only up by 1.32% – but over the last 12 months, it has gained a whopping 250%.

Sheffield has a market capitalisation of around $133 million, with approximately 346 million shares outstanding.  

More reading

• 2 exciting small cap ASX shares to buy
• Is the Webjet (ASX:WEB) share price a bargain buy?
• Tesla stock: headed to $1,071?
• Why the Home Consortium (ASX:HMC) share price is on watch
• BHP (ASX:BHP) share price on watch as copper demand tipped to soar

Motley Fool contributor Brooke Cooper 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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The Webjet Limited (ASX: WEB) share price has been out of form over the last four weeks.

Since this time on 18 March, the online travel agent’s shares have fallen approximately 15%.

This has been driven by concerns over the vaccine rollout and its decision to raise more funds last week.

Is this a buying opportunity?

According to a note out of Goldman Sachs this morning, its analysts believe the recent weakness in the Webjet share price is a buying opportunity.

Although the broker has downgraded its earnings forecasts to reflect its convertible notes offering, it has retained the buy rating and $7.00 price target it has on its shares.

Based on the current Webjet share price of $5.31, this implies potential upside of almost 32% over the next 12 months.

What did Goldman say?

Goldman commented on its capital raising. It said: “We view this announcement as a move towards removing capital structure uncertainty. While the new convertible notes are likely to be dilutive to equity shareholders in the future (considering our WEB target price), they are currently out of the money with par value 20.3% above the current share price.”

“In the interim, the announcement further lengthens debt maturity, removes the P&L impact from mark to market of the convertible option revaluation and lowers the interest cost on debt. While not a key factor in our base recovery scenario, we believe that these factors ease uncertainty in the bear case recovery scenario.”

Is the Webjet share price good value?

Goldman Sachs currently estimates that the Webjet share price is trading at a lofty 117x estimated FY 2022 earnings.

While this is very excessive, it quickly normalises in FY 2023 when trading conditions are expected to be back to normal.

Based on its earnings per share estimate of 21 cents per share in FY 2023, Webjet’s shares are trading at a more reasonable 25.5x estimated FY 2023 earnings.

This could make it worth considering for investors that are willing to make a patient investment.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Trashed COVID-19 vaccine targets hit ASX travel shares
• These are the 10 most shorted shares on the ASX
• Why ASX travel share prices are slipping today
• ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Tesla (NASDAQ: TSLA) popped on Monday, rising nearly 4% as of 1:05 p.m. EDT. The gain followed an analyst’s move to give the stock a significant price target increase. Canaccord Genuity analyst Jed Dorsheimer now thinks the electric-car maker’s shares could rise to $1,071 within the next 12 months.

After the growth stock hit an all-time high of just over $900 earlier this year, it slid sharply during part of February and the beginning of March. Has the pullback created a buying opportunity?

The path to $1,071

Dorsheimer more than doubled his price target for Tesla, increasing it from $419 to $1,071. In addition, the analyst changed his rating on the stock from hold to buy.

While Tesla makes most of its revenue from electric cars, the analyst’s upgrade for the stock today has a lot to do with his bullish view for the company’s solar and energy storage business. He believes Tesla’s energy generation and storage business could rake in $8 billion of revenue annually by 2025 thanks to an “Apple-esque ecosystem of energy products” and “harmonized electrification.” Dorsheimer thinks that as Tesla resolves the battery cell supply shortage it said it was facing in its most recent quarterly update, the company is well positioned to grow the business through sales of its energy storage products. He also believes Tesla is several years ahead of the competition in energy storage, giving it an edge. 

Momentum in energy

Though Tesla’s electric-car business gets more attention than its energy storage business since that’s where the bulk of the company’s sales come from, energy storage deployments actually grew faster in 2020 than electric-car sales. Total energy storage deployments, measured in gigawatt hours (GWh), increased 83% year over year to 3 GWh in 2020.

“This growth was driven mainly by the popularity of Megapack, our utility scale storage product,” Tesla told investors in its fourth-quarter update. “Powerwall demand continues to increase as the residential business continues to grow.”

Impressively, this growth came even as production was limited. “Our energy storage business continues to be supply constrained as backlog remains strong,” Tesla said. But its efforts to increase cell production will help the company ramp up supply “in the next few months.” Because of this, the automaker anticipates its energy storage business will grow at approximately the same rate in 2021 as it did in 2020.

Tesla’s solar business is growing slower, with megawatts of solar deployments increasing 18% in 2020 from the prior year. But this segment saw accelerated growth in the fourth quarter when deployments grew 59% year over year.

While investors should be sure to do their own due diligence on Tesla stock, Dorsheimer does highlight an often-underappreciated aspect of the business that could become a significant contributor to Tesla’s bottom line.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• Is it riskier NOT owning Tesla (NASDAQ:TSLA)?
• With the Bitcoin price up overnight your crypto Tesla just got cheaper
• Saxo reveals its Australian clients’ top 5 most popular shares

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla and Apple and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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There are a few exciting small cap ASX shares that are worth keeping an eye on for the coming years.

Smaller businesses can have a lot more growth potential because they’re simply earlier on with their growth journey.

It can be useful to find businesses that are growing internationally because that opens up a much bigger total addressable market for the company.

These two exciting small cap ASX shares could be really good candidates to own:

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the ASX retail shares with global growth aspirations. It has a sizeable network of stores across Australia and New Zealand. The retailer is currently rated as a buy by a few brokers including Morgan Stanley, which has a price target on it of $4.75. The broker is attracted to the level of online growth it’s generating.

In the FY21 half-year result, City Chic reported online sales growth of 42%, off a high base, with 73% of total sales coming from the online channel (up from 65% in FY20).

The business is steadily growing its market share in the northern hemisphere, with 45% of sales from that side of the world (up from 42% in FY20 and 29% in the first half of FY20).

City Chic now has a strong online business in the UK with Evans and in the US with Avenue. It can keep growing profit strongly with higher margins, taking market share and selling its City Chic range in the northern hemisphere.

The small cap ASX share is now looking at the entry into Europe, new product launches across the world and converting to larger stores in the US.

According to Morgan Stanley, the City Chic share price is valued at 30x FY22’s estimated earnings.

Bubs Australia Ltd (ASX: BUB)

Bubs is an Australian-based infant formula business that specialises in goat milk infant formula and adult goat milk products.

The Bubs share price is close to its 52-week low, even though the business reported in the latest quarter that it’s now seeing a turnaround. The market is still difficult with daigou buyers due to COVID-19, as A2 Milk Company Ltd (ASX: A2M) is reporting, but Bubs has other avenues to access growth.

Even so, Bubs reported a strong turnaround from daigou buyers. In the three months to 31 December 2020 (the FY21 second quarter), Bubs revealed corporate daigou sales went up 122% compared to the first FY21 quarter.

The small cap ASX share saw good quarter on quarter growth in other areas. China cross border e-commerce (CBEC) sales rose 27%, adult goat dairy sales grew 45%, Bubs infant nutrition grew 27% and export sales to markets outside of China saw growth of 194% quarter on quarter.

Another highlight was that Bubs was the fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse with combined retail scan sales at the checkout up 41% quarter on quarter.

Bubs said that its export sales to international markets outside of China contributed 17% of group revenue. The first shipments of Bubs infant formula and Bubs organic baby food products were exported to Malaysia during the second quarter.

The infant formula business has also signed with new prominent e-commerce platforms in the Asian region, with products now being sold on Redmart in Singapore and Lazada in Malaysia.

More reading

• Why the Bubs (ASX:BUB) share price is up 5% today
• These ASX retail shares continue to surge higher
• 2 impressive ASX shares to buy in April 2021
• Why AGL, Bubs, Harvey Norman, & Openpay are tumbling lower
• 2 quality ASX growth shares to buy for April

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 BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended BUBS AUST 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 Home Consortium Ltd (ASX: HMC) share price is one to watch this morning after an update on the company’s healthcare real estate investment trust (REIT) plans.

Why is the Home Consortium share price on watch?

Home Consortium has previously announced plans to create an ASX-listed, healthcare-focused REIT called HealthCo. Today’s announcement provided an update to investors on the latest plans for the vehicle.

The soon-to-be-created HealthCo will target “a model portfolio of assets in key sub-sectors including hospitals, primary care, childcare, aged care and life sciences”.

The Aussie REIT is targeting an initial equity raise of $1.0 billion – double that previously planned and announced in its half-year results. That’s on the back of positive feedback from investors and strong demand for healthcare assets.

The Home Consortium share price is one to watch as investors digest the latest plans. Home Consortium will target a 10% to 15% investment over the long term and contribute $250 million in seed assets from its balance sheet.

Today also saw Home Consortium unveil HealthCo’s advisory board and portfolio manager. Among the names are ex-PwC and EY managing partner, Joseph Carrozzi, and former Ramsay Health Care Limited (ASX: RHC) CEO, Danny Sims. Other advisory board members include:

• Former Guardian Early Learning CEO, Tom Hardwick;
• Former CIO of MLC Private Equity, Natalie Meyenn; and
• Former Dean of Medicine at the University of Sydney, Prof. Bruce Robinson.

Home Consortium has also unveiled Macquarie Capital, Morgan Stanley and Morgans Financials as financial advisers for the HealthCo raise with Sam Morris appointed Senior Portfolio Manager.

Foolish takeaway

The Home Consortium share price will be one to watch when the market opens. Shares in the Aussie REIT have jumped 18.4% so far this year and closed at a 52-week high yesterday.

The ambitious HealthCo plans will have investors watching closely in early trade as Home Consortium looks to double its initial investment plans.

More reading

• Home Consortium (ASX:HMC) share price success. What’s next?

Motley Fool contributor Ken Hall 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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BHP Group Ltd (ASX: BHP) shares will be on watch today amid reports the company has revised its internal forecasts due to soaring demand for copper and nickel. At Monday’s close, the BHP share price was trading at $46.18 after losing 0.79% yesterday.

The Sydney Morning Herald (SMH) reports today that BHP expects demand for copper to double and nickel to quadruple over the next 30 years due to the proliferation of the metals in renewable energy technologies.

BHP’s head of mining operations in the Americas, Ragnar Udd, said electric vehicles will be the key driver.

More reading

• 2 blue chip ASX dividend shares to buy today
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• Antipa (ASX:AZY) share price jumps 7%. Here’s why
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• Is the BHP (ASX:BHP) share price a buy right now?

Motley Fool contributor Lucas Radbourne-Pugh 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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The Aristocrat Leisure Limited (ASX: ALL) share price has been a very strong performer in 2021.

Since the start of the year, the gaming technology company’s shares have risen a sizeable 15.5%.

This means the Aristocrat Leisure share price is trading within sight of its record high.

Can the Aristocrat Leisure share price go higher?

One broker that believes the Aristocrat Leisure share price can still go higher from here is Goldman Sachs.

This morning the broker responded to new industry data by retaining its buy rating and lifting its price target to $37.48.

This compares to its current share price of $36.29.

What did Goldman say?

Goldman notes that the performance of its digital business remains strong and continues to win market share from rivals.

The broker said: “We assess the latest digital trends to Mar-31 (1H21) which remain robust and consistent with ALL’s recent commentary at its investor roundtable wherein it continues to take share from major competitors across Social Casino, as well as better-than-expected performances from EverMerge/RAID.”

Goldman Sachs also spoke positively about the rest of the business, which is showing signs of improvement.

It explained: “Beyond digital, we also highlight our recent channel checks suggesting that ANZ continues to show improvement, with upside risk from potential activity/operator appetite for purchases over the next 12-24 months whilst in North America, ALL continues to operate above market levels.”

“Further, we note comments yesterday from Oklahoma Indian Gaming Association chair that trends in Oklahoma continue to show marked improvement and should be at pre-COVID levels by June, which bodes well for ALL given its overweight position in the area.”

This ultimately led to the broker upgrading its earnings forecasts for the coming years and its price target accordingly.

And while Goldman’s price target doesn’t imply a huge amount of upside based on the current Aristocrat Leisure share price, other brokers see it going even higher.

Citi, for example, has a buy rating and $40.60 price target on its shares. This implies potential upside of 12% over the next 12 months.

More reading

• Brokers name 3 ASX shares to buy now
• The Aristocrat (ASX:ALL) share price is back near all-time highs
• EML Payments (ASX:EML) and these ASX shares just hit new highs
• 2 quality ASX shares to buy this week
• Leading broker names its best ASX share ideas for April

Motley Fool contributor James Mickleboro 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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There are some quality S&P/ASX 200 Index (ASX: XJO) that could be options for dividends.

It’s hard to generate much income from the bank right now because of the low interest rate environment right now.

But these two ASX 200 dividend shares have fairly high yields for FY21:

Centuria Industrial REIT (ASX: CIP)

The broker UBS rates this real estate investment trust (REIT) as a buy with a price target of $3.54.

It’s the ASX’s largest listed pure-play industrial REIT, it now has 62 high quality industrial assets with a total portfolio value of more than $2.6 billion.

The ASX 200 dividend share has largely recovered from the COVID-19 crash, with the share price now back to $3.40. At the time of the FY21 half-year result release, it had an occupancy rate of 97.7% and a long weighted average lease expiry (WALE) of 9.8 years.

The Centuria Industrial REIT net tangible assets (NTA) has increased to $2.99 per share.

In FY21 it’s expecting funds from operations (FFO) per unit to be no less than 17.6 cents per unit (which is better than the 17.4 cents per units which was forecast at the start of the financial year).

Centuria Industrial REIT is expecting to pay a distribution per unit of 17 cents per unit, which is paid quarterly. That translates to a FY21 distribution yield of 5%.

Talking about the prospects of the REIT, Jesse Curtis, fund manger of the ASX 200 share, said:

CIP’s strategy is to deliver income and capital growth to investors from a portfolio of high quality Australian industrial assets. Sector tailwinds continue to support investment fundamentals for industrial assets drawing both domestic and international capital to the sector. Tenant demand remains robust, particularly for high quality industrial assets located within infill locations close to major infrastructure. In a tightly held industrial market CIP’s portfolio will continue to be a key beneficiary of these sector themes.

APA Group (ASX: APA)

APA is one of the largest (energy) infrastructure businesses on the ASX. It owns and/or manages and operates a portfolio of assets worth around $22 billion. The key asset is a large national network of gas pipelines. APA also owns a number of other energy assets including gas storage, gas power station and renewable energy generation.

The business is always on the lookout to invest in new energy opportunities in Australia. It’s also looking for ideas in the US, which has been delayed because of the COVID-19 pandemic.

The ASX 200 dividend share has one of the longest growth streaks, going back before the GFC.

FY21 is no exception. In the half-year result, the business managed to increase its operating cashflow by 1.4% to $519 million and the distribution went up by 4.3% to 24 cents per security. APA funds its distribution growth from cashflow growth. Each new project can unlock more cashflow.

APA has established its ‘pathfinder program’ to explore a range of new energy technologies, many of which have the potential to leverage APA’s existing assets.

Organic capital growth is expected to be over $1 billion over FY21 to FY23, building on the $460 million Northern Goldfields Interconnect and $38 million Gruyere Hybrid Energy Microgrid announced in the period.

APA expects to pay a distribution of 51 cents per unit in FY21, which translates to a distribution yield of 5%.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why the Magellan (ASX:MFG) share price outperformed today
• ASX 200 drops, Santos entices CEO, Centuria acquires again
• Telstra (ASX:TLS) share price hits new 8-month high
• This beaten-down ASX sector could soon be turning the corner

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of APA Group. 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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