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The China market is one of the most lucrative in the world. If a company can gain a foothold in the world’s second largest economy, it has the potential to supercharge its sales and profits.

One ASX 200 stock which recently embarked on an extension into the country is fashion jewellery retailer Lovisa Holdings Ltd (ASX: LOV).

It opened its first store in China late last year and this could be followed by significantly more in the future.

That’s the view of analysts at Bell Potter, which have been digging deep into its expansion plans.

What is the broker saying about this ASX 200 stock?

Bell Potter is very positive on the company’s opportunity in the country. It highlights that China’s fashion jewellery market is estimated to be worth US$13 billion a year, which is 25 times the size of Australia’s market. It commented:

While China’s fashion jewellery market alone estimated at ~US$13b is ~25x as that of Australia, we estimate a China based store network opportunity of 15-20x as Australia’s total 550-600 stores retailing fashion jewellery. We’ve seen international fast fashion brands such as H&M and Zara growing their footprint to ~375 and ~200 respectively within 15-20 years since opening the maiden store in Mainland China.

The good news is that the early signs are positive for the ASX 200 stock in the massive market. Bell Potter notes that consumer feedback has been encouraging. It said:

We have assessed the latest customer reviews for Lovisa from Mainland China on the dominant social media app, Xiaohongshu (Little Red Book), since opening of the first Chinese store in December. Majority of the reviews are favourable, focusing on the attractiveness of styles/designs, price point and perceiving Lovisa products as value for money while the less conductive feedback driven by product durability and a close comparison to unbranded online substitutes.

Based on the above, Bell Potter believes that Lovisa could reach 100 stores in the country within 4 to 6 years. It adds:

We believe a 4-6 year timeline to reach 100 stores in Mainland China is justified given the US market blueprint and management experience in the region.

And if it does, the broker says it could add an estimated $40 million to $50 million to group revenues. Furthermore, due to lower operating costs, this could have a greater impact on its profitability.

Should you invest?

In light of the above, Bell Potter has reiterated its buy rating with an improved price target of $26.50. This implies potential upside of 13% for investors.

It also expects a 2.6% dividend yield in FY 2024, boosting the total potential return beyond 15%. It concludes:

We view LOV’s premium to the peer group as justified (~25x FY25e P/E, BPe), considering the gross margin outlook, store opportunity upside and ability to execute as a strong player in the fashion jewellery market, maintain BUY.

The post Buy this ASX 200 stock for its ‘massive’ China opportunity appeared first on The Motley Fool Australia.

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More reading

• Don’t look now, but these 3 ASX shares look poised for a nice rally
• Buy these ASX growth shares for market-beating returns
• Why Lovisa could become one of the top ASX 200 shares for dividend income
• The ultimate ASX growth shares I’d buy with $7,000 right now
• Buy and hold these ASX dividend stocks for a decade

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Zip Co Ltd (ASX: ZIP) share price is currently up 4% on rumours of possible takeover interest for the buy now, pay later business.

What do we know?

According to reporting by The Australian, there is “talk in the market” that Zip may be getting takeover interest following its turnaround from being loss-making to now making operating profits.

The newspaper pointed out a number of smaller competitors have collapsed and some of its larger competitors have exited the buy now, pay later market including Apple, Goldman Sachs and PayPal.

On top of that, Zip’s main rivals have increased their fees and are being rational with their business choices.

The Australian reported a Zip spokesman said the ASX share has not received any takeover approaches, but “multiple sources” have suggested at least one possible suitor is eyeing up Zip, and it is “gaining interest”.

Who might be interested in buying Zip shares?

The Australian suggested large offshore competitors could be interested in buying Zip, such as Klarna.

Some ASX bank shares may also be interested. The newspaper said Westpac Banking Corp (ASX: WBC) leader Peter King wants to make acquisitions. As some investors may know, Westpac used to own a substantial stake in Zip.

ANZ Group Holdings Ltd (ASX: ANZ) may also decide to embark on some acquisition activity if it isn’t allowed to buy the banking division of Suncorp Group Ltd (ASX: SUN).

Why would these ASX bank shares want Zip? The rationale would be that it could supposedly allow them to gain more exposure to younger Aussies.

Latest update

In the latest update, Zip said it’s expecting to report group cash earnings before tax, depreciation and amortisation (EBTDA) of between $29 million to $33 million. It said its revenue margin improved to 8.2%, up from 7.1% in the second quarter of FY23.

Zip also revealed it achieved a cash transaction margin of 3.5%, up from 2.8% in the second quarter of FY23.

Those numbers show that Zip has become a lot more profitable than it was before.

Zip share price snapshot

Over the past six months, the Zip share price has soared 90%.

The post Zip share price rises as investors buy now on takeover talk appeared first on The Motley Fool Australia.

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More reading

• Up 150% in 3 months: It’s not too late to buy these 2 rebounding ASX stocks
• Zip share price surges 7% on quarterly cash flow report
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• The Zip share price has soared 147% in 3 months, can it keep going?
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Goldman Sachs Group, PayPal, and Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short March 2024 $67.50 calls on PayPal. The Motley Fool Australia has recommended Apple and PayPal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It hasn’t been an easy time to be an investor in the lithium space, but things are certainly looking up for the industry today.

A number of ASX lithium shares are going gangbusters on Wednesday, much to the delight of their long-suffering shareholders.

ASX lithium shares going gangbusters

Here’s a summary of some of the movers and shakers in the industry today:

• The Argosy Minerals Limited (ASX: AGY) share price is up 8% to 10.25 cents
• The Core Lithium Ltd (ASX: CXO) share price is up 7% to 19.25 cents
• The Latin Resources Ltd (ASX: LRS) share price is up 8.5% to 15.2 cents
• The Liontown Resources Ltd (ASX: LTR) share price is up 5.5% to 95 cents
• The Mineral Resources Ltd (ASX: MIN) share price is up 3% to $56.91
• The Piedmont Lithium Inc (ASX: PLL) share price is up 11% to 20.5 cents
• The Pilbara Minerals Ltd (ASX: PLS) share price is up 4% to $3.52

What’s going on?

It appears that investors have been flooding back into ASX lithium shares on Wednesday in response to strong gains made by their global peers.

For example, Ganfeng Lithium jumped 8%, Tianqi Lithium leaped 7%, Albemarle rose 4%, and Lithium Americas Corp climbed 7% during overnight trade.

It’s possible that some investors believe that the industry has been oversold and are now returning to pick up some bargains.

In addition, there has been some individual news giving at least a couple of these ASX shares a boost today.

As we covered here, Pilbara Minerals has executed an amendment to its existing offtake agreement with Chengxin Lithium Group. It notes that this materially extends and expands the supply of spodumene concentrate to a leading lithium chemical converter.

In 2024, Pilbara Minerals will supply an additional 60kt of spodumene concentrate, taking the total supply to 85kt. In 2025 and 2026, the company will supply 150kt of spodumene concentrate to Chengxin Lithium Group.

Elsewhere, Piedmont Lithium has released a corporate update this morning. It confirmed that it has completed a 27% reduction in its workforce in an effort to cut costs. It hopes to save US$10 million on an annual run rate.

The post 7 ASX lithium shares going gangbusters today appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals share price jumps 5% on material offtake extension
• Why Champion Iron, Core Lithium, Metcash, and West African shares are sinking
• Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows
• These 3 ASX 200 shares just got some big broker upgrades!
• 2 dirt cheap ASX lithium shares to buy when the rout is over

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

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The ResMed Inc (ASX: RMD) share price is edging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $29.30. In morning trade on Wednesday, shares are swapping hands for $29.34, up 0.1%.

For some context, the ASX 200 is up 0.6% at this same time.

Here’s what’s happening.

What’s going on with the ASX 200 healthcare company?

The ResMed share price may be trailing the ASX 200 because the sleep treatment company’s stock is trading ex-dividend today.

That means investors who buy the stock today will no longer be eligible for the 4.8 US cents per share unfranked dividend.

That passive income payout will go to investors who held ResMed shares at market close yesterday. Eligible investors can expect to see this hit their bank accounts on 14 March.

The company will report on the Aussie dollar equivalent for ASX investors on Friday, 9 February. (At time of writing AU$1 is worth 65.3 US cents.)

It’s common for stocks to face some headwinds on the day they trade ex-dividend. All else being equal, the ResMed share price is now factored in at 4.8 US cents less than it would have been yesterday.

Unlike most ASX 200 stocks, ResMed pays dividends on a quarterly basis.

In the quarter just past, the company paid US$70.7 million in dividends. It also repurchased 335,000 shares for US$50 million as part of ResMed’s ongoing capital management.

Overall, it was a strong quarter for the company, with revenue up 12% year on year (11% on a constant currency basis) to US$1.2 billion. And profits were well up, with non-GAAP operating profit leaping 20%.

Commenting on the outlook for the sleep treatment company on the day it reported, CEO Mick Farrell said, “ResMed is well-positioned to lean into leading the expansion and growth of sleep health and breathing health. We are the clear leader in a very large and growing market.”

ResMed share price snapshot

The steep falls in August and September see the ResMed share price down 7% over 12 months.

Shares have soared 37% since the lows on 25 September.

The post What’s happening with the ResMed share price on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Own Resmed shares? Here are 3 impactful points from the results of its feared disruptor
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Pilbara Minerals Ltd (ASX: PLS) share price is climbing this morning following some juicy news.

At the time of writing, shares in the lithium producer are up 5.2% to $3.56. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is basking in a 0.74% increase.

Let’s rummage through the release giving investors a jolt.

Please, Pilbara, may I have some more

Fresh off its quarterly update late last month, Pilbara Minerals is giving its shareholders another optimistic item today. This time, the news relates to an extension to an agreement struck last year with China-based lithium converter Chengxin Lithium Group.

For some background, Chengxin Lithium is a significant producer of lithium chemicals, supplying a vast assortment of customers. Its clientele includes prominently established names in the automotive and battery industries such as BYD, LG Chemical, CATL, and Hyundai.

In the 12 months ending 30 September 2023, Chengxin Lithium raked in A$2.27 billion of revenue and A$490 million in net profits after tax (NPAT). Currently, the Shenzhen-listed company is valued at A$3.79 billion.

According to today’s release, Pilbara Minerals has executed an amendment to its existing offtake agreement with Chengxin Lithium. The heavily shorted Aussie lithium company will see a material extension and expansion of its original agreement.

The initial 2023 agreement stipulated 70,000 tonnes of spodumene concentrate to be supplied in FY24 from the Pilgangoora operation. However, the newly updated offtake arrangement will see Pilbara Minerals provide spodumene until the end of the 2026 calendar year.

Quantities under the agreement are as follows:

• CY24: Supply an additional 60,000 tonnes for a total of 85,000 of spodumene concentrate
• CY25: Supply 150,000 tonnes of spodumene concentrate
• CY26: Supply 150,000 tonnes of spodumene concentrate

All sales to Chengxin Lithium under the extended offtake agreement will be priced at prevailing market rates.

Will it shake out the Pilbara Minerals share price shorters?

Pilbara Minerals shares have seemingly been in a death spiral since August 2023 — a trend aligning with a slump in lithium prices. As a result, the company’s shares have sat atop the most shorted ASX share throne for many weeks.

On Monday, fellow Fool James Mickleboro again disclosed Pilbara Minerals as the most shorted stock on the Australian share market. Roughly one-fifth of shares in the lithium producer were sold short, indicating many are expecting lower prices from here.

However, today’s announcement indicates increasing demand for the electrifying commodity from Chengxin Lithium, at least.

Ultimately, the Pilbara Minerals share price will heavily rely on the underlying commodity’s supply and demand. Interestingly, the team at Ark Invest hold a positive view of the future of electric vehicle demand, which could correspond with increasing lithium needs.

As shown above, Ark Invest forecasts approximately a four-fold uptick in EV sales by 2030, surpassing 70 million.

The Pilbara Minerals share price is down 26% over the past year.

The post Pilbara Minerals share price jumps 5% on material offtake extension appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• If you’d invested $20,000 in Pilbara Minerals shares in 2020, this is how much you’d have today
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Earnings season has gone up a gear on Wednesday with a good number of ASX shares releasing results.

Among them are four ASX REITs, which have handed down their report cards. Let’s see how they performed:

BWP Trust (ASX: BWP)

The BWP share price is up 2% to $3.42. This morning, the Bunnings Warehouse-focused property company reported a 5% increase in revenue to $82.3 million and a modest increase in profits before investment property valuation changes to $57.5 million. This was underpinned by like-for-like rental growth of 4.8%. BWP will be paying an interim distribution of 9.02 cents per unit.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial share price is up 1% to $3.35. The industrial property company posted a statutory profit of $12.2 million, compared to a loss of $45.6 million a year earlier. And while Centuria Industrial’s funds from operations (FFO) were flat at $54.1 million for the half, the company has increased its FFO per share guidance for the full year to 17.2 cents. It has also reaffirmed its FY 2024 distribution guidance of 16.0 cents per share.

Dexus Industria REIT (ASX: DXI)

The Dexus Industria share price is up over 4% to $2.90. Investors appear pleased with its like-for-like income growth of 7.3%. Management notes that this leaves it “on track to deliver FY24 guidance with HY24 Funds From Operations (FFO) per security of 8.6 cents and distributions of 8.2 cents.”

Newmark Property REIT (ASX: NPR)

The Newmark Property share price is up 1.5% to $1.33. It reported a 2.9% increase in operating earnings to $7.2 million thanks to like-for-like income growth of 3.9%. Newmark has also reaffirmed its FY 2024 distribution guidance of 7.6 cents per share. That’s if its proposed merger with BWP doesn’t complete before then. Speaking of which, this morning Newmark advised that it continues to unanimously recommend that shareholders accept the proposal.

The post 4 high-profile ASX REITS charging higher on half-year results appeared first on The Motley Fool Australia.

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More reading

• Brokers say these 3 ASX dividend shares are buys
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• How can I make $1,000 a month from ASX shares?
• Retirees: 2 Top ASX dividend shares I’d buy now for passive income in 2024
• Brokers say buy these ASX 200 dividend stocks with juicy yields

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

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ASX reporting season is a very interesting time. I’m going to talk about two ASX stocks that could be undervalued going into February and may impress the market.

We’ve only seen a few results so far this month, but I thought the Nick Scali Limited (ASX: NCK) report was very interesting. It was so good that the Nick Scali share price jumped 16% in response.

Nick Scali revealed that its gross profit margin increased by 360 basis points to 65.6%. Recent trading showed January 2024 written sales orders of $58.9 million were up 3.6% compared to January 2023. The retailer said the “positive momentum” of the second quarter of HY24 is continuing.

With that result in mind, I think these two businesses could also impress.

Adairs Ltd (ASX: ADH)

Adairs is one of the most similar businesses to Nick Scali on the ASX. Adairs operates Adairs, Focus on Furniture and Mocka.

If the strength of household spending is widespread, rather than just limited to Nick Scali, then Adairs’ trading update could impress.

Investors really aren’t expecting much of the business, the Adairs share price is down over 30% in the last year and it has fallen 65% from April 2021.

It’s understandable why the ASX stock has fallen so much – in an elevated cost-of-living world, some households may reduce their spending on home furnishings and furniture. But, the market may have gone too pessimistic.

The company is now only valued at 10.6 times FY24’s estimated earnings and 8 times FY25’s estimated earnings. A rise of 10% would still mean the Adairs share price has a very low price/earnings (P/E) ratio.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a diversified business with a number of different sectors, including chemicals, energy, fertilisers, retail and healthcare.

The company has already told investors that its main businesses of Kmart and Bunnings have been doing well, with households looking to find the best value on offer.

I think Kmart’s earnings could impress the market. At the ASX stock’s AGM, it said that “strong financial results have continued” at Kmart Group as it benefited from “market-leading value credentials of its Anko products, which are resonating with an increasingly wide cross-section of households.”

I’m also hopeful that the better-than-expected performance of Nick Scali could imply that house-related spending is still strong, which could suggest Bunnings may be performing well.

Bunnings is by far the biggest profit generator in the Wesfarmers stable, so seeing good profitable performance here could make the biggest difference for investors and could help support the Wesfarmers share price in the shorter-term but most importantly the long-term.

According to Commsec, the Wesfarmers share price is valued at 27 times FY24’s estimated earnings.

The post 2 ASX stocks that could explode in February appeared first on The Motley Fool Australia.

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More reading

• Own Wesfarmers shares? Here’s your half-year results preview
• 1 ASX dividend stock down 65% to buy right now
• Would I be crazy to buy Wesfarmers shares at $58?
• Beginner investors: 5 top Aussie stocks I’d buy for 2024
• Where I’d invest $2,000 in ASX 20 shares today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs and Wesfarmers. The Motley Fool Australia has positions in and has recommended Adairs and Wesfarmers. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The National Australia Bank Ltd (ASX: NAB) share price is in the red today

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $32.20. In morning trade on Wednesday, shares are swapping hands for $32.01 down 0.5%.

For some context, the ASX 200 is up 0.3% at this same time.

This comes amid news of a top-level executive shakeup at the big four bank.

What’s happening with the ASX 200 bank’s CEO?

The NAB share price is dipping after the bank announced that CEO Ross McEwan will step down from the role on 2 April.

McEwan joined NAB in December 2019 to institute crucial changes following the findings of the Banking Royal Commission.

“Ross has been exactly the CEO we needed. He came in at a critical time with significant international experience and expertise,” NAB chair Philip Chronican said.

Chronican said that McEwan “has rightly been recognised as a tremendous and reliable career banker”.

He added, “He has been a stabilising force for NAB and the industry and we wish him well for the future.”

The NAB board announced that Andrew Irvine will replace McEwan as CEO and managing director. Irvine has served as NAB’s group executive business and private banking since 2020. Prior to that he was head of Canadian business banking at Canada’s oldest bank, the Bank of Montreal.

“Andrew is well suited to take NAB into its next chapter of growth and performance for our customers, colleagues and the communities we serve,” Chronican said.

Chronican added:

He has lifted our business and private banking performance and been a tireless advocate for the agricultural sector, small business and First Nations business. His expertise in digitisation, transformation and modernising has created significant benefits for how our bank operates.

“I am excited by the opportunity to lead NAB, a bank that is core to the financial needs of so many Australians and New Zealanders,” Irvine said.

He noted that he’d learned a great deal from McEwan over the past years and said, “NAB is on the right trajectory to being a better bank and I will work with my colleagues to continue executing our strategic ambitions.”

Commenting on Irvine’s appointment as NAB’s new CEO, McEwan said, “Andrew is a highly capable, internationally experienced banker who brings the right lens to us wanting to be Australia’s best relationship-driven bank.”

NAB share price snapshot

The NAB share price is up 1% over 12 months.

The ASX 200 bank stock has gained 14% over the last six months.

The post NAB share price dips as CEO steps down appeared first on The Motley Fool Australia.

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More reading

• Want to buy ASX 200 bank shares? You need to read this
• Buying NAB shares? Here’s why your dividend yield is down 20% in 8 months
• Got $15,000? How I’d invest for a bulletproof ASX passive-income portfolio
• Breaking! NAB shares (and CBA) just hit a new 52-week high
• How much would I need to invest in NAB shares now for $1,000 a month in passive income?

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

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Weight-loss drugs. It’s a topic that has captivated the masses for the past two years, spearheaded by the miracle-like effects. The rising popularity of glucagon-like peptide 1 (GLP-1) agonists — dominated by Novo Nordisk’s Ozempic and Wegovy — have been a thorn in the side for Resmed Inc (ASX: RMD) shares.

At its worst, the Resmed share price plunged 35.5% in eight weeks last year. Since then, shares in the medical device maker have regained part of their former glory. Today, Resmed is trading 35% above last year’s trough at $29.30.

Maybe the market is beginning to more closely evaluate how big of an impact weight loss medication will have on demand for devices treating sleep apnea — a sleep disorder commonly experienced alongside obesity.

What better way to stay up to speed with any ramifications for Resmed than by getting direct to the source. If anything is keeping Resmed shareholders up at night, I’d take a guess it would be pharmaceutical giant Novo Nordisk — the figurative boogeyman under Resmed’s bed.

Keeping close tabs on a threat to Resmed shares

As a Resmed shareholder myself, I think it’s prudent and insightful to read the results of our largest perceived risk. As Sun Tzu put it in The Art of War, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.”

Furthermore, any threat is likely to be downplayed within the Resmed community. I’d argue a more true reflection can be obtained by stepping into the dragon’s lair.

So, here are three notable takeaways from Novo Nordisk’s fourth-quarter 2023 result.

1. Weight loss application is booming

Before obesity care entered the scene, Novo Nordisk was known as a provider of treatments for people with diabetes. That is still true, with the company filling approximately 5 million GLP-1 scripts monthly in the United States for diabetes. However, weight-loss usage (or obesity care) is beginning to rival the company’s insulin sales.

As shown above, obesity care was Novo Nordisk’s fastest-growing segment in FY23, with sales surging 154%. This category is sold under the company’s Wegovy label, a repackaged formulation of the same active ingredient in Ozempic known as semaglutide.

This is notable for owners of Resmed shares. It demonstrates a strong and growing demand among people affected by obesity. Keep in mind the total estimated addressable population is currently 764 million. So, only a fraction of people are receiving treatment.

2. Beware the tablet

A point against GLP-1s highlighted by Resmed CEO Mick Farrell is the prohibitive price over a lifetime of use — requiring weekly injections. Generally, tablets are a much cheaper vector for delivery and come with fewer complications.

Novo Nordisk already makes Rybelsus, the first oral GLP-1 agonist, except its small dosage is for treating type-2 diabetes. However, the company is showing promising results for a 50-milligram version for the obesity care demographic.

Trials have yielded a weight loss of 17.4% after 68 weeks compared to a 1.8% reduction baseline, as shown above. Slated to be a once-a-day tablet for weight loss, Novo Nordisk is currently undertaking phase 3 trials.

A tablet could unlock a much bigger market for GLP-1s, making it more tolerable and cheaper. If a strong link is made to reduced sleep apnea cases, this could present a risk to Resmed shares.

3. Misuse an unlikely target

Rumours of wide use by celebrities and the broader public as a ‘get-slim-quick’ drug might well be overdone.

During the conference call, Nadim Rizk enquired about the percentage of ‘casual users’ and whether it could spark a crackdown by the Food and Drug Administration (FDA). Novo Nordisk executive VP of commercial strategy and corporate affairs, Camilla Sylvest, responded:

On the data that we have, especially from our launch in the U.S., we see from our real-world evidence that the average BMI of the people who are treated with Wegovy is approximately around a BMI of 37. This has also been confirmed in additional countries where we have launched in Europe. So that is sort of the average BMI, well above the label that we have that is BMI of 27 with comorbidities or above 30.

Averages are not always representative. However, it does suggest the medication is being prescribed appropriately.

The post Own Resmed shares? Here are 3 impactful points from the results of its feared disruptor appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a lot of ASX dividend stocks to choose from on the Australian share market.

But which ones could be buys for income investors this month?

Two that analysts have named as buys and tipped to pay attractive dividend yields are listed below. Here’s why they are feeling bullish on them:

GDI Property Group Ltd (ASX: GDI)

Bell Potter thinks that GDI Property is an ASX dividend stock to buy.

It is a property owner and fund manager, currently managing property investments in Greater Sydney, Brisbane, Perth, South East Queensland, and North Queensland.

Bell Potter is positive on the company’s outlook and is forecasting double-digit earnings growth over the next three years. It commented:

Despite its sector low valuation metrics, GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth. With 17.5% portfolio vacancy the P&L rental risk is already on foot with limited near-term expiries which suggests en masse that there could be more earnings upside than downside risk.

It is expecting this earnings growth to underpin the payments of dividends per share of 5 cents in both FY 2024 and FY 2025. Based on the current GDI Property share price of 65.5 cents, this implies yields of 7.6% in both years.

The broker has a buy rating and 75 cents price target on its shares.

Transurban Group (ASX: TCL)

Over at Citi, its analysts think that Transurban could be an ASX dividend stock to buy this month. It is the owner of toll roads such as CityLink and Cross City Tunnel.

The broker believes that Transurban could be having a better than expected year in FY 2024. It commented:

We believe TCL’s FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy

Citi has pencilled dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.35, this will mean yields of 4.7% and 4.9%, respectively.

The broker currently has a buy rating and $15.90 price target on Transurban’s shares.

The post These ASX dividend stocks offer 20%+ total returns appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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