No one will blame you if you feel there’s a lack of buying opportunities among ASX shares as the S&P/ASX 200 Index (Index:^AXJO) pushes towards record highs.

But there are ASX shares that are in the “buy” zone and leading brokers have picked the latest two that’s worth considering in this toppish market.

The first is the Select Harvests Limited (ASX: SHV) share price as Citigroup initiated coverage on the stock with a “buy” recommendation.  

Going nuts about earnings growth

The broker believes the almond grower’s profits will increase at 41% a compound annual growth rate (CAGR) from FY20 to FY23.

The big profit drivers for the Select Harvests share price are a rebound in almond prices on lower Californian supply, the acquisition of the high-yielding Piangil orchard and a normalisation of water costs.

The ASX share on a new bull cycle

“Almond prices have historically followed a 10-year cycle driven by Californian industry fundamentals,” said Citi.

“While COVID-19 has disrupted this cycle, we forecast almond prices to peak at US$4.48/lb (A$13/kg) in 2024/25; almost triple current levels.”

The broker’s 12-month price target on Select Harvests is $6.50 a share. The Select Harvests share price jumped 1.8% to $5.61 in morning trade.

Upgraded to “buy” despite rising bond yields

Meanwhile, the Goodman Group (ASX: GMG) share price is also outperforming at the time of writing.

The industrial property group got upgraded by UBS to “buy” from “neutral” despite rising bond yields.

Property shares typically move in the opposite direction to bond yields, but the broker isn’t concerned.

Multiple reasons to buy this ASX share

This is partly because Goodman Group’s valuations are inherently conservative, according to UBS. This provides a substantial buffer to material interest rate movements.

Further, the group’s development margins are in excess of 30% on conservative end-value yields and management can improve its portfolio through developments and divestments.

UBS also estimates that a 50-basis point increase in the discount rate (tied to bond yields) will cut the share valuation by 12%. But this can be largely offset by rent increases and inflation.

Finally, Goodman Group’s strong balance sheet and ability to fund growth via equity means its reasonably insulated from the rising cost of debt.

“Given that the stock is now trading at a significant discount to our unchanged A$18.70 FY22E NAV-based price target, and given acceleration in the underlying business, we see risk-reward as skewed to the upside over our forecast horizon,” added UBS.

More reading

• ASX 200 up 0.8%: Metcash update, tech shares rebound, PointsBet acquisition
• We’ll get 7.8% yield from ASX this year, says investment pro
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 recovers, Evolution Mining acquisition, Afterpay sinks
• 2 ASX 200 shares to buy for income

Motley Fool contributor Brendon Lau 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 Centuria Capital Group (ASX: CNI) share price was up 1% in early morning trade before retracing. At the time of writing, the Centuria share price is up 0.63%.

Centuria is listed on the S&P/ASX 200 Index (ASX: XJO) and is currently trading for $2.38 per share.

We take a look at the latest announcement from Centuria Healthcare, a subsidiary of Centuria Capital, below.

What did Centuria Healthcare announce to the market this morning?

Centuria’s shares are moving today. This comes in light of the company reporting that its Healthcare subsidiary has partnered with a joint venture (JV) to deliver a new private hospital. Furthermore, the $64 million short-stay facility will be developed in Kew, Melbourne.

The JV consists of 42 specialist doctors along with Medibank. Centuria Healthcare reported it will also own the asset. In addition, the company reports that the JV has committed to a 15-year lease term.

Comments from the managing director

On the partnership, Andrew Hemming, Centuria Healthcare managing director, said:

We are delighted to partner with the joint venture doctors and Medibank to develop and own the real estate delivering this new short-stay surgical facility. This is a transformative project that can change the landscape of the healthcare sector and we are pleased to be the real estate partner of this forward-thinking project.

Hemming also added that the project aligns with Centuria Healthcare’s strategy “to partner with top-tier operators backed by secure lease covenants”.

Centuria Healthcare currently has around $1 billion of modern healthcare real estate assets across Australia.

However, the new hospital development remains subject to obtaining the standard licensing and planning approvals.

Centuria share price snapshot

Over the past 12 months, Centuria’s shares have gained 16%. That compares to a 36% gain on the ASX 200.

Year-to-date the Centuria Capital share price is down 8%.

More reading

• Centuria Capital (ASX:CNI) reports $57 million healthcare asset purchases
• Centuria (ASX:CNI) share price down after $162 million in equity raising in 8 weeks

Motley Fool contributor Bernd Struben 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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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. The benchmark index is currently up 0.8% to 6,825.3 points.

Here’s what is happening on the market on Tuesday:

Metcash strategy update

The Metcash Limited (ASX: MTS) share price is trading lower today following the release of its strategy update. In addition to its strategy update, the wholesale distributor revealed strong sales momentum for all business segments so far in the second half of 2021. Supermarket, hardware and liquor sales have all experienced double digit growth compared to the prior corresponding period. Another positive is that Metcash has increased its target dividend payout ratio from 60% to 70% of underlying net profit after tax.

Tech shares rebounding

It has been a better day for tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) on Tuesday. Thanks to the easing of bond yields in the United States, investors have been piling back into the sector again. This led to the tech-heavy Nasdaq index rising over 1% during overnight trade. On the local market, the S&P/ASX All Technology Index (ASX: XTX) has followed its lead and is up 1.2% at the time of writing.

PointsBet announces acquisition

The PointsBet Holdings Ltd (ASX: PBH) share price is pushing higher today after announcing the acquisition of Banach Technology for US$43 million. Banach Technology is a Dublin-based provider of proprietary risk management platforms and quantitative driven trading models. These platforms and models support complex pre-game and in-play betting products across numerous sports, including the four major American sports and international soccer. In-play wagering is expected to represent ~75% of all sports wagering activity in the United States within three years.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the ARB Corporation Limited (ASX: ARB) share price with a 4% gain. This is despite there being no news out of the 4×4 accessories company. The worst performer has been the Viva Energy Group Ltd (ASX: VEA) share price with a decline of 3% on no news.

More reading

• Why the Metcash (ASX:MTS) share price is in focus
• We’ll get 7.8% yield from ASX this year, says investment pro
• Why all eyes will be on the PointsBet (ASX:PBH) share price today
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 recovers, Evolution Mining acquisition, Afterpay sinks

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 Appen Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended ARB Limited and Pointsbet Holdings 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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The Clean TeQ Holdings Ltd (ASX: CLQ) share price is flat in morning trade despite the company reporting its second major contract in as many days.

Shares in the technology-oriented ASX pollution control company are trading at 27 cents per share at the time of writing.

Let’s take a closer look at what’s happening with the Clean TeQ share price today.

What new contract award did Clean TeQ announce?

In today’s release, the company announced a new contract to design and install a Clean TeQ BIONEX water treatment plant in a Chinese coal mine. The contract has been awarded to Clean TeQ’s 100% owned Beijing-based subsidiary.

Clean TeQ said the water treatment facility, to be built at the mine site in Inner Mongolia, can treat and remove “nitrate from 12,000 m3 /day of coal mine in pit groundwater to below 1 ppm”. This level is in line with local regulations for mine water disposal.

Worth approximately $2 million, the contract was awarded by a subsidiary of Beijing Enterprises Water Group (HKG: 0371), which has a market cap of more than $5.2 billion.

Clean TeQ reports that the company, among the largest water treatment companies in Asia, has “expressed an interest in ongoing cooperation once this first BIONEX plant is successfully commissioned”.

Words from the management

Commenting on the new contract, Clean TeQ managing director Sam Riggall said:

We have persisted for a long time to make inroads into the very large Chinese water treatment market.

As we move towards the proposed demerger of our water business later this year, it is pleasing to see that we have achieved some initial success in that important market as we continue to make good progress on our goal of growing revenues.

Today’s announcement follows yesterday’s ASX release, in which Clean TeQ reported a new contract award for a water treatment plant upgrade in Oman. That contract is valued at more than $1 million.

Clean TeQ share price snapshot

The past 12 months have been good to Clean TeQ shareholders, with shares up 108%. Over that same time, the All Ordinaries Index (ASX: XAO) is up 39%.

Year-to-date, the Clean TeQ share price is up 4%.

More reading

• Why the Clean TeQ (ASX:CLQ) share price is pushing higher today
• Clean TeQ (ASX:CLQ) share price nosedives 8% on $10 million loss

Motley Fool contributor Bernd Struben 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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Incannex Healthcare Ltd (ASX: IHL) shares are up again today as the company announced its new CBD-based drug is more effective in treating rheumatoid arthritis than currently available medications.

The Incannex share price opened nearly 15% higher than yesterday’s close after the news broke. It has since dropped back to 22.5 cents, representing a 9.76% gain for the day so far. 

Incannex is a pharmaceutical development company working on the commercialisation of medical cannabis and psychedelic medicine therapies.

Here’s a closer look at what the company announced today.

Rheumatoid arthritis treatment breakthrough

The Incannex share price is surging higher today after the company heralded another research program for its new drug IHL-675A following positive results in a pre-clinical study. 

The company’s latest study found the drug is up to 3.5 times more effective at reducing arthritis than common treatments currently on market.

Currently, the main treatment for rheumatoid arthritis is hydroxychloroquine (HCQ), marketed as Plaquenil. The company noted long term use of HCQ has been linked to increased cardiovascular mortality.

Incannex’s new treatment is a combination of cannabidiol (CBD) and HCQ. By combining CBD And HCQ, the amount of HCQ needed to treat arthritis can be reduced up to 10-fold, resulting in fewer side effects for patients.

In further news boosting the Incannex share price, the new drug also showed potential for treating other types of inflammation. The study demonstrated it to have “potent anti-inflammatory activity” when treating inflammatory lung conditions such as asthma and bronchitis, as well as colitis.

Incannex plans to market IHL-675A in key global markets, including the United States, Europe, Japan and Israel. It has filed an International Patent Application and plans to pursue US Food and Drug Administration registration, subject to the ongoing success of clinical trials. 

Commentary from management

Incannex Healthcare CEO and managing director Joel Latham said IHL-675A has the potential to be a breakthrough in the treatment of rheumatoid arthritis. He commented:

Hydroxychloroquine is an established medication for rheumatoid arthritis and IHL-675A has been demonstrated to outperform it at reducing disease severity in an animal model.

The benefit of the CBD and hydroxychloroquine combination in IHL-675A is potent. The observation that IHL-675A was as effective or better than a standard dose of hydroxychloroquine, even though it contained 90% less drug, is an exciting result for the Company.

Incannex share price snapshot

Over the past 12 months, the Incannex share price has risen by more than 460%. The company’s shares are also up by 50% year to date.

Based on the current Incannex share price, the company has a market capitalisation of around $217 million with approximately 1 billion shares outstanding.

More reading

• Up 300% in 1 year, what’s driving the Incannex Healthcare (ASX:IHL) share price?

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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Despite the healthcare leading the gains in the S&P/ASX 200 Index (ASX: XJO) yesterday, there are some healthcare shares that have been out-of-form over the last month.

It can sometimes be useful to take a look at which shares are bucking a sector-wide trend. This can assist in pinpointing which are valuable opportunities and which could be underperformers.

In saying that, let’s take a look at 3 ASX healthcare shares that have been sluggish over the past 30 days.

ASX healthcare shares feeling off

Pro Medicus Ltd (ASX: PME)

Shares in the health imaging software provider have now been following a downward trend for nearly a month. Following the announcement of several new contract signings for its software, the company released its 2021 half-year results.

The company’s results were reasonable with growth across all metrics. However, the market might be apprehensive to buy at these prices due to the founders selling down their holdings following the release. Both Dr. Sam Hupert and Mr. Anthony Hall sold 1 million shares each. This represented 4% of their respective shareholdings.

The Pro Medicus share price has fallen 6.3% in the last month. Whereas the company’s shares have appreciated by 62% in the past 6 months.

Volpara Health Technologies (ASX: VHT)

The Volpara Health share price has been under pressure since February. The New Zealand-based healthcare software provider of breast imaging services has fallen nearly 15% over the last month.

Despite the company’s revenue growth and expansion through acquisition, this ASX healthcare share has continued to sell-off. Most recently, Volpara announced the signing of its highest value contract to date. The deal with CRA Health is worth US$400,000 per year in annual recurring revenue (ARR) terms.

It is possible that the market wasn’t overly impressed with the announcement considering CRA Health was acquired by Volpara recently. Hence, the payment from CRA is more so internal money shifting.

Noxopharm Ltd (ASX: NOX)

This ASX healthcare share has certainly seen better days. The Noxopharm share price has dropped by 27% in the past month of trading.

The clinical-stage drug development company has been in a state of decline since it reported half-year results. Being in the early stages of drug development, Noxopharm reported a hefty $6.7 million loss on the bottom line for the half.

Unfortunately for Noxopharm, this result was released around the time when investors began being more cognisant of valuations. As a result, it appears not even news of the company’s Veyonda drug moving to its final stage of the clinical trial has been able to turnaround the market’s sentiment.

On a positive note, the Noxopharm share price has gained 106% in the last 6 months. 

More reading

• Here’s why the Volpara (ASX:VHT) share price is surging 7% higher
• The Pro Medicus (ASX:PME) share price is up 23% in 2021: Can it go higher?
• Is it ok to buy ASX 200 shares at a 52-week high?
• Why Flight Centre, Qantas, ResApp, & Volpara are racing higher
• Why the Volpara (ASX:VHT) share price is pushing higher today

Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. and VOLPARA FPO NZ. The Motley Fool Australia has recommended Pro Medicus Ltd. 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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The Starpharma Holdings Limited (ASX: SPL) share price is pushing higher on Tuesday morning.

At one stage today, the dendrimer products developer’s shares were up as much as 6% to $1.98.

At the time of writing, Starpharma share price has eased back but remains 1% higher at $1.89.

Why is the Starpharma share price pushing higher?

The catalyst for this gain has been the release of a positive announcement this morning relating to its second radiopharmaceutical candidate, DEP HER2-lutetium.

According to the release, DEP HER2-lutetium achieved potent and durable anticancer activity in a human breast cancer model. The release advises that it demonstrated complete tumour regression, outperforming Herceptin (trastuzumab) labelled with lutetium.

The study was conducted at University of Queensland’s Centre for Advanced Imaging. It evaluated the anticancer activity of different doses of DEP HER2-lutetium and DEP lutetium. Treatment with either a 1×15 MBq or 2×9 MBq dose of DEP HER2-lutetium showed a potent anti-tumour effect, resulting in complete tumour regression in the BT474 human breast cancer model.

Positively, all dose regimens of DEP HER2- lutetium were extremely well tolerated. Furthermore, there were no deaths due to treatment or as a result of tumour growth in any treatment group.

What now?

Management notes that radiotheranostics is a rapidly developing area of cancer treatment and diagnosis, which has recently generated several high-value deals. Recent deals include the acquisition of Endocyte by Novartis for US$2.1 billion and the acquisition of former ASX listed company Sirtex by CDH Genetech for ~A$1.9 billion.

Sales in the category are estimated to grow to $12 billion to $15 billion by 2030.

Starpharma’s CEO, Dr Jackie Fairley, commented: “We and our specialist radiotheranostics clinical advisers are very excited by these latest data. Starpharma now has multiple potential DEP products in the radiopharmaceuticals and radiodiagnostic area. We are delighted to continue working with Professor Kristofer Thurecht at the University of Queensland’s Centre for Advanced Imaging, as well as building strong relationships with radionuclide specialists and clinicians.”

More reading

• Which ASX healthcare shares saw the biggest gains in February?
• Starpharma (ASX:SPL) share price slips after posting loss
• Here’s why the Starpharma (ASX:SPL) share price is rocketing 13% higher
• Why Bank of Queensland, MNF, Oil Search, & Starpharma are charging higher

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Brainchip Holdings Ltd (ASX: BRN) share price nosedived at market open following the surprise exit from its CEO. At one point, the artificial intelligence technology company’s shares hit as low as 47.5 cents. However, some bargain hunters have swooped in, easing the share price to 51 cents, down 9%.

What’s driving the BrainChip share price lower?

The BrainChip share price is deep in the red today as investors weigh up the company’s latest update.

According to this morning’s release, the BrainChip board has mutually decided to terminate the managing director and CEO, Louis DiNardo, from his post. While no reason was stated for the abrupt exit, the decision was made with immediate effect, concerning shareholders. The company said that Mr. DiNardo was leaving to ‘pursue other interests’.

In a bid to quickly fill the hole left, the board has appointed Peter van der Made as the new interim CEO. Mr van der Made is the current chief technology officer, co-founder, and executive director of BrainChip. He was also CEO of the company from October 2015 until September 2016, when Mr. DiNardo took over the reins.

During the interim period, Mr van der Made will be assisted by his senior management team to fulfil his outstanding duties. This includes Anil Mankar who is co-founder and chief development officer, Ken Scarince, chief financial officer, and Rob Telson, vice president of worldwide sales.

BrainChip noted that there will be no changes to Mr van der Made’s remuneration package, while he serves the new temporary role. A search is currently underway to find a permanent replacement.

To ensure a smooth transition process, Mr. DiNardo will move into a 12-month part-time role with BrainChip, supporting Mr van der Made.

Management commentary

BrainChip non-executive chair Mr. Emmanuel Hernandez commented:

On behalf of the Board and the employees of Brainchip, we thank Lou for his years of service to Brainchip and for taking us from concept to silicon. We wish him the best in his future endeavours.

Mr. van der Made went on to add:

I also want to thank Lou for leading us to this point. I am honoured to lead our team during this interim period, while the Board commences an expeditious search for our next seasoned Chief Executive Officer, to further advance the commercialization of our Akida technology and strategy for the future.

Despite today’s fall, the BrainChip share price has gained more than 1,500% since this time last year.

More reading

• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300
• Brainchip (ASX:BRN) share price tumbles 5% today. Why?
• Brainchip (ASX:BRN) share price slides on bigger loss

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.

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The Rhythm Biosciences Ltd (ASX: RHY) share price has opened higher on Tuesday after the successful completion of Study 6 for its ColoSTAT product. At the time of writing, the Rhythm share price is trading at $1.60, up 6.33%.

Let’s take a closer look at this announcement and what it means for the Rhythm share price.

Why the Rhythm share price opened higher on Tuesday 

The Rhythm share price has surged. Climbing from a low of 3.5 cents 12-months ago to a high of $1.675 on 2 March. The company continues to hit significant milestones. In particular, for the commercialisation of its simple, affordable, and effective ColoSTAT blood test. This test focuses specifically on the early detection of colorectal cancer, the third-largest cause of cancer-related deaths globally. 

Today, the company announced the successful completion of Study 6 for ColoSTAT. Study 6 confirmed that the third-party commercially manufactured ColoSTAT prototype test-kid demonstrated a high level of accuracy for the detection of colorectal cancer via a simple blood test. 

This test utilised a third-party, commercially developed test-kit which proved that the test was reproducible, salable and consistent. Study 6 demonstrated an increase in performance over Rhythm’s earlier testing results announced in November 2020.

The company will now progress to Study 7, which involves a ~1000 patient clinical trial across ten clinical trial sites. The newly appointed sites will provide geographical diversity across four states. These trials will ultimately support regulatory submissions. In particular, for the Conformitè Europëenne (CE) Mark and the Therapeutic Goods Administration (TGA) in Australia. 

Rhythm share price eyes global opportunity 

Rhythm highlights the growing burden of colorectal cancer in the US. The US Preventative Services Task Force currently recommends the screening age to be reduced from 50 to 45 years. This would increase the targeting screening population in the US to ~144 million people, up from 94 million. The US Centres for Medicare and Medicaid Services has also released a draft decision outlining the criteria for reimbursement of current and future blood-based colorectal cancer screening tests. Rhythm also notes that its ColoSTAT testing kid would be able to meet the requirements for reimbursement eligibility in the US. This comment was based on the Study 6 performance. 

Comments from the CEO

Rhythm CEO, Glenn Gilbert is pleased with the company’s results today and eyes future opportunities to commercialise the ColoSTAT test:

We continue to target ColoSTAT® as a disruptive cancer detection technology for the global mass screening market to address the growing burden of colorectal cancer. The completion, increase in performance and generally positive outcome of Study 6, is a critical milestone for the Company as we progress our clinical trial, and importantly, how we now consider our entry plans for the global markets, including the US.

Additionally, in Rhythm’s half-year results, the company notes that it remains fully funded to execute its development plan. Furthermore, Rhythm ended the December 2020 period with a cash balance of $6.02 million. 

More reading

• Which ASX healthcare shares saw the biggest gains in February?

Motley Fool contributor Kerry Sun 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 Clover Corporation Limited (ASX: CLV) share price is surging this morning following the release of its results for the first half of FY21.

At the time of writing, the specialist ingredients company’s shares have climbed 5.62%, trading at $1.41.

Let’s take a closer look and see how the company performed over the period.

What were the financial highlights?

The Clover share price is climbing this morning despite the group reporting a set of negative numbers.

For the six months ending 31 January 2021, Clover delivered total net sales revenue of $29.4 million, reflecting a 21.7% decrease on the prior corresponding period (pcp). The soft result was primarily driven by difficult trading conditions caused by COVID-19 across the infant formula industry.

The Chinese market experienced supply channels fluctuations as demand from Daigou’s tumbled with international travel halted, affecting ‘grey market’ importation.

Adding to the company’s woes, local Chinese manufacturers have increasingly become more competitive with international brands. This includes pricing war and aggressive channel strategies, which has led the Australian and New Zealand market to record a fall in revenue.

Elsewhere, however, Clover grew revenue slightly in Europe, Asia and its United States segments, based on new customers and products.

Operating expenses came to $4.6 million for the first half, a drop of 15% on this time last year. The reduction was attributed to management’s focus on limiting discretionary spending through several initiatives. It’s worth noting that the company has also put many new product programs on hold as customer’s staff continue to work from home.

On the company’s bottom line, net profit after tax (NPAT) sank to $2.5 million, which is a heavy fall of 45.8% over H1 FY20. While expenses were curtailed, one-off impacts such as start-up costs in Melody Dairies and ongoing legal fees were to blame. The latter is associated with enforcing the company’s intellectual property rights against Pharmamark Nutrition Pty Ltd.

Clover closed the period with a cash balance of $9.8 million, a slight increase of $0.6 million on the prior comparable term. Total current liabilities stood at $6.5 million, down from $10.9 million achieved in H1 FY20.

Despite the poor result, the board declared a fully franked dividend of 0.5 cents per share to be paid on 29 April 2021.

Outlook for the Clover share price

Looking ahead, Clover revealed that global uncertainty is leading to a slow recovery in the infant formula market. With this in mind, it expects revenue for the entire FY21 period to be between $60 million and $70 million.

In addition, the company stated that it would seek to pursue opportunities that will enhance growth across its customer base. It said that establishing new sources of raw materials and rolling out new product applications will advance the business’ prospects.

The Clover share price has lost close to 30% of its value over the past 12 months. Year-to-date, the story is no different, with its shares down almost 20%.

More reading

• No ASX dividend share is perfect, but Soul Patts (ASX:SOL) is more perfect than most

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. 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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