Some ASX dividend shares have very big dividend yields thanks to their big payout ratios and the growth generated in recent times.

But, not only do the businesses below have large yields, but the businesses are also increasing the dividends per share too.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest Australian retailers of appliances and electronic devices. It has experienced a high level of demand over the last 12 months and this was shown in the latest FY21 half-year result.

It saw total sales go up 23.7% to $4.9 billion, earnings before interest and tax (EBIT) grew 76% to $462.8 million and net profit after tax (NPAT) grew 86.2% to $317.7 million. One area of particularly strong growth was an online sales increase of 161.7% to $678.8 million.

Both The Good Guys and JB Hi-Fi Australia saw large growth of its EBIT margin thanks to cost control. JB Hi-Fi Australia’s EBIT margin increased 214 basis points to 9.8% and The Good Guys’ EBIT margin went up 417 basis points to 8.7%.

The ASX dividend share’s board decided to increase the interim dividend by 81.8% to $1.80 per share – this represented 65% of net profit. It currently has a trailing grossed-up dividend yield of 7.4%.

Nick Scali Limited (ASX: NCK)

Nick Scali is another ASX retail share that is experiencing high levels of growth. HY21 sales went up 24.4% to $171.1 million. Sales order growth in January 2021 was up 47%, with the sales order bank at the end of the month being the highest of all time.

HY21 underlying EBIT grew 100.3% and the EBIT margin rose 1,270 basis points to 33.6%. Underlying earnings per share (EPS) also doubled, which allowed the board to grow the interim dividend by 60% to $0.40 per share.

The ASX dividend share continues to add new stores to its network. It’s expecting to open two further stores in the second half of FY21.

Nick Scali currently has a trailing grossed-up dividend yield of 8.7%.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) operated by Charter Hall Group (ASX: CHC) with the aim of generating rental income from tenants with a high quality property portfolio and long weighted average lease expiry (WALE). The properties are spread across different sectors including telecommunications exchanges, agri-logistics, industrials and logistics, office and long WALE retail.

The WALE was 14.1 years at 31 December 2020 at the ASX dividend share and the weighted average rental review (WARR) increase was 2.2%.

Charter Hall Long WALE REIT reaffirmed its FY21 operating EPS guidance of no less than 29.1 cents per security, representing growth of at least 2.8%. The target distribution payout ratio remains at 100% of operating earnings, representing a FY21 yield of at least 6%.

More reading

• How are these ASX 200 retail shares tracking after JobKeeper’s end?
• Will the Kogan (ASX:KGN) share price making a comeback in April?
• 2 major ASX retail shares trading near record highs
• These are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Tristan Harrison 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.

The post 3 ASX dividend shares with BIG yields appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wEnRtN

There are some really good S&P/ASX 200 Index (ASX: XJO) shares that could be good options to own for potential growth.

Some businesses have already reached a size where long-term compound growth is limited. However, there are a few ASX 200 shares that have very interesting growth prospects over the next year and beyond:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is one of the largest healthcare ASX 200 shares, with a market capitalisation of almost $17 billion according to the ASX.

The business is generating strong operating leverage in its laboratory division. The huge level of COVID-19 testing has been enabled by historical investments in people and infrastructure (expertise, equipment, facilities, IT, supply chain and so on). The business has conducted more than 18 million COVID-19 PCR tests performed in around 60 Sonic laboratories globally.

Thanks to the high level of COVID-19 testing, half-year revenue grew 33% to $4.4 billion and net profit after tax (NPAT) rose 166% to $678 million.

The USA and Germany in-particular saw high levels of growth. The US division generated 39% organic revenue growth, despite base revenue (excluding COVID testing) being down 8%. The second wave impact was significantly less than the first. Germany saw organic revenue growth of 58% – Sonic is the largest provider of COVID-19 PCR tests in Germany, in 30 laboratories nationwide.

Even the Australia division saw 26% organic revenue growth, despite Australia’s COVID-19 situation being much more controlled than in the northern hemisphere. Base business revenue growth was 5%.

The ASX 200 share said that it’s in a strong position for future growth, with demand for COVID-19 PCR testing to continue into the foreseeable future. Management said that the underlying strong healthcare growth drivers are unchanged. Sonic has leading market positions in Australia, Germany, USA, UK and Switzerland.

At the current Sonic Healthcare share price it’s valued at 14x FY21’s estimated earnings according to CommSec.

Brickworks Limited (ASX: BKW)

The diversified property and building products business is seeing a recovery for its business and continued growth for its property trust.

Brickworks said that the pandemic has resulted in increased consumer demand for lower density living and this is resulting in a shift towards detached housing from multi-residential alternatives. This is favourable for Austral Bricks and Bristle Roofing, due to the relatively high usage of bricks and roof tiles in detached houses.

The ASX 200 share has been pro-active throughout the pandemic to accelerate several initiatives and ensure the business emerges stronger. All of Brickworks’ major Australian divisions saw growth of its earnings before interest and tax (EBIT). It continues to invest in its manufacturing plants to ensure market leadership.

In America, Brickworks has made strong progress on key strategic priorities. Significant ‘plant rationalisation’ activities were also accelerated through the pandemic, with a total of 16 manufacturing plants transitioning to 10. There has been higher demand for single family housing across the country. There was a strong recovery of demand during March, with improved weather and increased optimism of a stimulus-led, post-pandemic recovery. The daily order intake is now at pre-pandemic levels. Long-term growth is anticipated, once conditions normalise.

There’s a lot of potential with its property trust, with development activity going on at an unprecedented scale. Completion of pre-committed facilities over the next two years will result in a significant uplift of rental income and asset value, according to Brickworks. The trend towards online shopping and demand for more sophisticated facilities will help drive growth.

At the current Brickworks share price, it offers a grossed-up dividend yield of 4.1%.

More reading

• Why the Orocobre (ASX:ORE) share price is surging
• The National Storage (ASX:NSR) share price is at a 52-week high. Here’s why
• Should income investors buy Sonic Healthcare (ASX:SHL) shares?
• ASX 200 rises, EML jumps, Zip falls
• Why the Bubs (ASX:BUB) share price is up 5% today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX 200 shares to buy for growth appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3fOEHQr

The Western Areas Ltd (ASX: WSA) share price is on watch this morning following a preliminary production update. At yesterday’s market wrap, the nickel producer’s shares closed the day $2.13.

Let’s take a closer look and see how Western Areas performed for the stated period.

How did Western Areas perform?

Western Areas share price could be on the move today after the company delivered a robust performance for the March quarter.

In its announcement, Western Areas reported a significant improvement in both mine and milled physicals at its Forrestania operations in Western Australia. The company mined 4,236 Ni tonnes, resulting in strong nickel (Ni) in concentrate production. This reflected an increase of up to 20% quarter-on-quarter.

Western Areas achieved a grade of 3.6% Ni in total of the mined ore, representing a gain of up to 27% quarter-on-quarter.

Nickel produced in concentrate of 4,267 Ni tonnes, lifting 21% quarter-on-quarter due to higher mined grades and mill recoveries.

Words from the management

Western Areas managing director Dan Lougher commented:

As previously flagged to the market, we re-entered the higher-grade areas of the Flying Fox mine this quarter, and saw improved mined nickel grades from Spotted Quoll.

This result was setup by the significant development and rehabilitation of existing ore drives achieved during the previous December quarter, which allowed access to and mining of higher-grade ore tonnes in the March quarter.

The company stated that it remained focused on continuing the positive momentum into the final quarter of FY21. It expects that the development and rehabilitation work already undertaken will help contribute to attaining that goal.

Western Areas share price snapshot

The Western Areas share price is marginally higher, around 4%, over the past 12 months. However, the company’s shares have fallen close to 20% year-to-date, notably treading lower since the beginning of last month.

Based on current valuations, Western Areas commands a market capitalisation of roughly $670.2 million, with 314.6 million shares outstanding.

More reading

• These are the 10 most shorted shares on the ASX
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower
• Is this a better way to buy into the ASX mining supercycle?
• Here’s why the Western Areas (ASX:WSA) share price is sinking today
• Why the Western Areas (ASX:WSA) share price is in a trading halt

Motley Fool contributor Aaron Teboneras 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.

The post Why the Western Areas (ASX:WSA) share price is on watch appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3t3sQSr

Since listing in 1994, CSL Limited (ASX: CSL) has become a household name among Australian investors.  

The biotech giant has had a strong track record of performing consistently well, regardless of market conditions.

However, following an initial surge during the height of the COVID-19 pandemic, the CSL share price has struggled. This, despite the overall Australian share market enjoying a strong recovery.

How has CSL performed?

In mid-February, CSL reported a strong set of results for the 6 months ended 31 December. The company reported a 16.9% increase in revenue of US$5,739 million and 44% growth in net profit after tax (NPAT).

CSL noted that the COVID-19 pandemic had influenced the performance of its Behring and Seqirus arms. For the first half of FY21, CSL Behring reported a 9% increase in revenue whilst Seqirus reported a 38% surge in revenue.

The company’s Seqirus arm is one of the largest influenza vaccine companies in the world. Growth in the Seqirus business was fueled by a surge in demand for flu vaccinations from consumers.

On the other hand, CSL’s Behring business which encompasses plasma collection delivered slower growth for the first 6 months. Despite issues with plasma collections, CSL managed to keep costs low and beat market expectations for the first half.

So what’s holding the CSL share price back?

Despite demonstrating earnings growth for the first half, investors have failed to jump on the CSL share price. Shares in CSL are currently trading more than 23% lower than their all-time high of $341.00. The fall in investor interest saw the CSL share price hit a new 52-week low last month of $242.00.

Could the fact that CSL did not change its full-year guidance be putting some investors off? Despite a strong first half, CSL forecast FY21 NPAT to be in the range of approximately US$2,170 million to US$2,265 million at constant currency. The implication that CSL could have a weaker second half has been compounded by fears of lower plasma collection volumes.

Pre-COVID, CSL operated one of the largest and most efficient networks of plasma collection centres. But with donors in the US deterred from visiting plasma collection centres, there has been a seismic decline in volumes.  

However, vaccine rollouts in the US and Australia may offer some light at the end of the tunnel. CSL’s Seqirus arm could be a natural offset by pumping out vaccines, thereby making people more comfortable to attend collection centres.

More reading

• CSL (ASX:CSL) share price remains near 52-week low on COVID-19 vaccine delays
• 2 quality ASX healthcare shares to buy and hold
• Leading brokers name 3 ASX shares to buy today
• Top broker picks the best ASX shares to buy for the new quarter
• 5 of the best ASX shares to buy after the Easter break

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.

The post What’s happening with the CSL (ASX:CSL) share price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3t0LXN4

The Rio Tinto Limited (ASX: RIO) share price is on watch today after an update from its majority-owned entity, Energy Resources of Australia Ltd (ASX: ERA).

Energy Resources provided a quarterly update on production and rehabilitation efforts at its Ranger Mine in the Northern Territory. Rio Tinto owns an 86.3% stake in the ASX-listed Energy Resources.

Why is the Rio Tinto share price in focus?

Investors will be watching shares in both Rio Tinto and Energy Resources, Australia’s longest continually operating uranium oxide producer.

Energy Resources produced 34 tonnes of uranium oxide in the March 2021 quarter, down 96% from the 390 tonnes recorded in the December 2020 quarter. The mining group halted production on 8 January 2021 in line with the Ranger Authority.

The Energy Resources share price fell 21.9% lower in the space of a week between January 7 and January 14. The Aussie miner needed to cease mining and processing activities in the Ranger Project Area by January 2021. January 2026 is the deadline for final rehabilitation efforts under the Ranger Authority.

The Rio Tinto share price has edged lower in 2021 but the world’s second-largest metals and mining group still has a $167.2 billion market capitalisation.

The January shutdown now concludes 40 years of operation at the Ranger Mine, having produced over 132,000 tonnes of drummed uranium. Ranger rehabilitation efforts are continuing at the site, according to today’s release.

Energy Resources didn’t spend on evaluation or exploration during the quarter. Energy Resources expects to complete sales into its existing sales contracts through 2021. The average realised selling price is expected to be US$50 to US$55 per pound.

The Rio Tinto share price will be one to watch following the quarterly update from Energy Resources. Yesterday’s quarterly release also provided an update on its Ranger 3 Deeps resource discovered in 2009.

Energy Resources said, “Given the current uranium market environment, the Ranger 3 Deeps project faces material barriers to development”. Ranger 3 Deeps decline and decommissioning will continue with plant decommissioning due to be completed in Q3 2021.

Foolish takeaway

The Rio Tinto share price will be one to watch following a quarterly report from its majority-owned Energy Resources. Shares in the iron ore giant have climbed 27.1% in the last 12 months to $113.44 at yesterday’s close.

More reading

• UBS is calling time on the ASX iron ore supercycle
• ASX 200 boom as Joe Biden unveils massive infrastructure, tax package?
• Is the Fortescue share price ring-fenced by Twiggy and its climate targets?
• Why Macquarie thinks the BHP (ASX:BHP) share price and 2 others will outperform
• Why the South32 (ASX:S32) share price is outperforming today

Motley Fool contributor Ken Hall 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.

The post Why the Rio Tinto (ASX:RIO) share price is in focus appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39UxWZQ

One stock expert has admitted he got it wrong last year but said that this means that right now, there are some massive buying opportunities.

Forager Funds chief investment officer Steve Johnson said that when the COVID-19 market crash happened 13 months ago, his predictions proved to be “woeful”.

“The way different sectors were impacted by COVID surprised me. A lot,” he posted on the company blog.

“Home furnishings boom? Nope. Motorbike retailer has best year ever? Nope. Funeral homes have their worst year ever? Definitely didn’t see that coming.”

The biggest surprise was the enterprise software subsector.

Johnson, as well as many other experts, expected that this group of tech companies would be relatively shielded from COVID losses.

“Unlike software sold to individuals or small businesses, where the user simply buys the product and starts using it, most enterprise software is heavily integrated into a company’s operations and customised for each client,” he said.

“They are almost impossible to remove, making for sticky revenues and attractive long-term investments.”

But a horrible league table of ASX-listed enterprise software makers shows their shares all currently trading significantly below their pre-pandemic prices.

“It turns out that this prediction wasn’t right either,” Johnson said.

“Apparently, some of the revenue isn’t as recurring or reliable as investors had come to believe.”

Enterprise software company	Share price change from 1 Jan 2020 to 21 Mar 2021
Gentrack Group Ltd (ASX: GTK)	(62%)
Bravura Solutions Ltd (ASX: BVS)	(48%)
Integrated Research Limited (ASX: IRI)	(32%)
Livetiles Ltd (ASX: LVT)	(28%)
Infomedia Limited (ASX: IFM)	(24%)
Iress Ltd (ASX: IRE)	(24%)
Altium Limited (ASX: ALU)	(21%)
Appen Ltd (ASX: APX)	(20%)
ELMO Software Ltd (ASX: ELO)	(19%)
Nearmap Ltd (ASX: NEA)	(17%)
Readytech Holdings Ltd (ASX: RDY)	(6%)
Source: Forager Funds, table created by author

Why are enterprise tech companies so cheap now?

Johnson attributed this group’s misfortune to the way revenues are received from clients.

“Most enterprise software companies earn significant amounts of upfront implementation revenue. That depends on winning new clients. And some of the ‘recurring’ revenue is related to clients requesting changes or introducing new features,” he said.

“With employees working from home and much bigger problems to deal with, most corporates have moved IT system upgrades down their lists of priorities.”

But he believes this now presents a golden opportunity to buy up these companies. Because they will come roaring back.

“The problems are real, but the share price reactions look overdone,” Johnson said.

“The timing of a recovery is uncertain. But the deals will return, and investor optimism will likely come back alongside them.”

The executive attributed both Forager funds’ outperformance in the past 12 months to “capitalising on widespread over-reactions, and being willing to change our minds as the evidence came to hand”.

“In the enterprise software sector, we’re doing both.”

More reading

• Is Canva coming to the ASX?
• Why Zip (ASX:Z1P) and this ASX growth share could be buys
• Insiders have been buying Nearmap (ASX:NEA) and this ASX share
• 2 beaten down ASX tech shares to buy this week
• 2 excellent ASX growth shares to buy

Tony Yoo owns shares of Altium, Appen Ltd, Elmo Software, and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd, Bravura Solutions Ltd, Infomedia, Integrated Research Limited, LIVETILES FPO, Nearmap Ltd., and Readytech Holdings Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd, Elmo Software, Infomedia, IRESS Limited, LIVETILES FPO, Nearmap Ltd., and Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These oversold ASX tech shares are ripe for the picking appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2RbEkFj

The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Thursday.

This follows the release of an announcement this morning which reveals that further civil proceedings have been brought against the banking giant.

What did Westpac announce?

This morning Westpac acknowledged that ASIC has commenced civil proceedings against the bank in relation to the sale of consumer credit insurance (CCI) between 7 April 2015 to 28 July 2015.

According to the release, the proceedings relate to the sale of CCI products to approximately 384 of the bank’s customers. The corporate watchdog alleges that Westpac supplied CCI to certain customers who had not requested or agreed to acquire these products.

The bank advised that ASIC is seeking, among other things, declarations of contraventions of certain civil penalty provisions and unspecified monetary penalties.

Westpac is carefully considering these claims and stated that it is committed to working constructively with ASIC through the Court process.

It also notes that it has not sold these products since 2019.

What did ASIC say?

ASIC went into a lot more detail than Westpac and has provided a thorough breakdown of the allegations.

It explained: “ASIC has commenced civil penalty proceedings in the Federal Court against Westpac Banking Corporation (Westpac), alleging it mis-sold consumer credit insurance (CCI) with credit cards, and other credit facilities, to customers who had not agreed to buy the policies.”

“ASIC’s action relates to Westpac’s Credit Card Repayment Protection and Flexi-Loan Repayment Protection policies which are add-on insurance products sold with credit cards and lines of credit.”

Between the aforementioned dates, ASIC alleges that Westpac made false or misleading representations that customers had agreed to acquire, were liable to pay for and that Westpac had a right to charge for, CCI products.

It also alleges that the bank asserted a right to payment for the CCI premiums which customers were not liable to pay.

In addition, it claims that Westpac failed to ensure that its financial services were provided efficiently, honestly, and fairly when it supplied CCI to customers who had not agreed to acquire them.

This ultimately means the bank failed to comply with financial services laws.

ASIC Deputy Chair, Karen Chester, said, “ASIC’s deep dive investigations in late 2018 and into 2019 found lenders had disappointingly not changed policies and conduct to stem harms from the design and sale of CCI. As a result, we’ve commenced civil proceedings against Westpac.”

More reading

• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• Westpac (ASX:WBC) share price lower on APRA update
• Top broker picks the best ASX shares to buy for the new quarter
• 2 blue chip ASX dividend shares you can buy in April
• Brokers name 3 ASX shares to buy right now

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

The post Westpac (ASX:WBC) share price on watch after ASIC launches civil proceedings appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mv113a

The Orocobre Limited (ASX: ORE) share price is one to keep a close eye on right now. Shares in the Aussie lithium chemical producer jumped 7.4% higher yesterday and are now up 20.1% in 2021 alone.

Why is the Orocobre share price surging right now?

It usually pays to look at ASX announcements when shares are on the move. For Orocobre, however, there have been no major announcements since its half-year results released on 26 February 2021.

Orocobre reported significant cost reduction for the half-year ended 31 December 2020 with the cost of sales coming in at US$3,777 per tonne thanks to increased operational efficiency.

Production levels fell 9% to 6,079 tonnes due to coronavirus restrictions while sales soared 21% higher to 7,738 tonnes. Heightened focus on the electric vehicle market has put lithium producers like Orocobre back in the spotlight after years of weakening market conditions.

The Orocobre share price has soared 139.7% higher in the last 12 months compared to a 33.1% gain for the S&P/ASX 200 Index (ASX: XJO).

One of the biggest factors driving Orocobre’s valuation higher is macro rather than micro. Global lithium prices have been surging and are approaching a 2-year high. This comes as the electric vehicle push gains momentum around the world from producers, consumers and regulators.

March 2021 saw a particularly strong period for lithium prices. That helped propel the Orocobre share price towards its current $5.37 per share level.

It’s not just Orocobre that is experiencing gains. Australia has a number of large lithium companies including Galaxy Resources Ltd (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS).

All three of these lithium producers have been surging in value with strong support for the electric vehicle movement from US President Joe Biden and a growing frenzy around Tesla Inc (NASDAQ: TSLA) shares in the last 12 months.

Foolish takeaway

Anytime an ASX 200 share surges 7.4% in one day, it’s worth keeping an eye on. The Orocobre share price has performed strongly in 2021 and is now just 12.8% shy of a new 52-week high.

More reading

• The National Storage (ASX:NSR) share price is at a 52-week high. Here’s why
• ASX 200 rises, EML jumps, Zip falls
• Why the Bubs (ASX:BUB) share price is up 5% today
• ASX stock of the day: Tassal Group (ASX:TGR) shares rise 5%
• Nova Minerals (ASX:NVA) share price sinks as gold estimate grows

Motley Fool contributor Ken Hall 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.

The post Why the Orocobre (ASX:ORE) share price is surging appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3fSHQPk

The Regional Express Holdings Ltd (ASX: REX) share price is on watch this morning following its procurement announcement late yesterday afternoon. At Wednesday’s market close, the regional airline operator’s shares finished the day at $1.59.

Founded in 2002, Regional Express is Australia’s largest independent regional airline that operates more than 1,500 weekly flights across 60 destinations. The company is widely recognised as servicing remote areas within Australia that are not offered by other airlines.

What did Regional Express announce?

The Regional Express share price could be on the move today as investors weigh up the company’s latest update.

In yesterday’s release, Regional Express advised its subsidiary, Pel-Air, had secured a deal with New South Wales Ambulance (NSWA).

The Fixed Wing Patient Transport Services contract will see Pel-Air provide 5 fixed-wing aircraft, pilots and engineering support. This will enable the aerial transport of NSW Ambulance medical personnel and patients throughout NSW regional communities.

Regional Express expects operations to start on 1 January 2022 and run for a 10-year period.

Pel-Air will assign 5 King Air 350 planes to service the agreement. In addition, 2 Pilatus PC 24 jets will be acquired, replacing 2 King Air 350 aircraft in September 2023.

It’s worth noting that Regional Express currently has a similar contract with Ambulance Victoria. That deal, entered in 2009, recently was extended until 2023.

Regional Express chair, the Hon. John Sharp AM commented:

This award is a clear recognition of Pel-Air’s undisputed ability to provide safe, reliable and high-quality aeromedical services on fixed-wing aircraft at the most competitive prices.

We solemnly commit to the NSW Government that we will spare no efforts in achieving the satisfaction levels which Ambulance Victoria has experienced for the last decade.

Regional Express share price snapshot

In the past 12 months, the Regional Express share price has gained more than 160% off the back of its COVID-19 lows. However, year-to-date, the company’s shares are down more than 20%.

Last December, Regional Express shares hit a multi-year high of $2.50 following an approved investment from Asian company PAG.

Regional Express has a market capitalisation of roughly $175 million, with 110 million shares on issue.

More reading

• The Regional Express (ASX:REX) share price has fallen after fresh Qantas challenge
• Qantas (ASX:QAN) holds 74% of domestic flight market
• Why the Regional Express (ASX:REX) share price is flying high today
• Qantas (ASX:QAN) successfully trials COVID vaccine app in preparation of return to international travel

Motley Fool contributor Aaron Teboneras 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.

The post Why the Regional Express (ASX:REX) share price is in focus appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2PIV0DU

The National Storage REIT (ASX: NSR) share price jumped 2.4% higher on Wednesday to close at a new 52-week high.

Shares in the self-storage real estate investment trust (REIT) closed at $2.13 per share with a $2.2 billion market capitalisation.

Why is the National Storage share price surging higher?

Yesterday’s strong gains came as the S&P/ASX 200 Index (ASX: XJO) managed another strong day of trade. The benchmark Aussie index climbed 0.6% higher to 6,928.00 points on Wednesday.

National Storage was one of many high-profile shares pushing higher yesterday. Shares in the Aussie REIT are now up 3.7% in 2021 and 33.1% in the last 12 months. All of this comes as National Storage pushes ahead with its growth and expansion strategy.

National Storage advised in December that it now has 206 self-storage centres across Australia and New Zealand. There were also plans announced to add 5 expansion and development projects that were nearing completion or recently completed.

The National Storage share price fell lower towards the end of the year as investors hoped for stronger FY2021 guidance. The Aussie REIT is forecasting earnings per share at the upper end of the 7.7 to 8.3 cents per share range.

This week’s announcement of the trans-Tasman travel bubble has helped to boost investors hopes for Australia’s economy. New Zealand Prime Minister Jacinda Ardern announced plans to allow quarantine-free travel between Australia and New Zealand from April 19 onwards.

That saw ASX 200 shares climb higher in the hopes of further tourism activity and general economic optimism. The National Storage share price has jumped higher despite no announcements since March 5 and appears to be caught up in the momentum.

Foolish takeaway

The National Storage share price closed at a new 52-week high of $2.13 per share on Wednesday. The group’s current $2.2 billion valuation is notably close to or higher than some of the takeover offers received in 2019 and 2020.

US-based Public Storage made a $2.40 per share offer for the REIT while private equity groups Warburg Pincus and Gaw Capital both offered $2.20 per share for National Storage.

More reading

• ASX 200 rises, EML jumps, Zip falls
• Why the Bubs (ASX:BUB) share price is up 5% today
• ASX stock of the day: Tassal Group (ASX:TGR) shares rise 5%
• Nova Minerals (ASX:NVA) share price sinks as gold estimate grows
• Are ASX tech shares like Afterpay (ASX:APT) back to the races?

Motley Fool contributor Ken Hall 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.

The post The National Storage (ASX:NSR) share price is at a 52-week high. Here’s why appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2RfJS1M