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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is charging higher, up 4.8% in morning trade to $6.96 per share.

Below, we take a look at the latest regulatory approval that looks to be spurring investor interest in the ASX biotech share.

What regulatory approval was announced?

The Telix share price is gaining after the company reported that it has received approval for its prostate imaging product, Illuccix, from the Australian Therapeutic Goods Administration (TGA).

Illuccix is a “positron emission tomography agent” used to diagnose men with prostate cancer.

According to the release, Illuccix, after radiolabeling with gallium-68, is the first commercially approved PSMA-PET imaging agent available in Australia.

With the TGA approval, the company aims to provide state-of-the-art PSMA PET imaging for men across the country, including in regional areas.

Telix noted that prostate cancer was the second most common cause of cancer death for men in Australia in 2020, claiming some 3,500 lives. 17,000 new cases were diagnosed in Australia in 2020 alone.

What did management say?

Commenting on the TGA approval, Telix President David Cade said:

The approval of Illuccix means Australian patients with prostate cancer will have broad access to a TGA-approved PSMA-PET imaging agent. This new mode of imaging has been recognised in leading clinical practice guidelines as superior to conventional imaging with CT1 or MRI2, for the staging of prostate cancer.

Illuccix attaches to prostate cancer cells expressing PSMA and can be picked up by a PET scanner, giving physicians the ability to visualise tumour cells, including very small metastases, wherever they are in the body.

The Telix share price could also be getting a boost today from the wider implications of the TGA approval for other international markets.

According to Telix CEO Christian Behrenbruch, “This approval is an important milestone for Telix, demonstrating the approvability of Illuccix and establishing a blueprint for a series of near-term regulatory submissions and reviews in other important markets across the Asia Pacific.”

Telix share price snapshot

The Telix share price has been a star performer in 2021, up 83%. By comparison the All Ordinaries Index (ASX: XAO) is up 12% year-to-date.

Over the past month, Telix shares are up 20%.

The post Here’s why the Telix (ASX:TLX) share price is charging 5% higher today appeared first on The Motley Fool Australia.

More reading

• IAG (ASX:IAG) share price sinks 6% on guidance downgrade
• National Tyre (ASX:NTD) share price surges 8% on acquisition news
• Travel is resuming but the Flight Centre (ASX: FLT) share price still lost 7% in October
• Netwealth (ASX:NWL) share price drops on Praemium merger proposal
• What happened for the Afterpay (ASX:APT) share price in October?

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

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The Insurance Australia Group Ltd (ASX: IAG) share price is sinking on Tuesday.

In morning trade, the insurance giant’s shares are down almost 6% to $4.56.

Why is the IAG share price sinking?

Investors have been selling down the IAG share price after it provided an update on net natural perils claim costs for FY 2022. This follows severe storm and hail activity experienced over the course of October.

According to the release, the most recent event, which impacted South Australia and Victoria between 27 and 29 October and South East Queensland on 30 October, saw IAG receive approximately 14,000 claims by 4pm on 1 November. This is expected to rise further over the coming days.

IAG anticipates the net cost for this event to be $169 million, the maximum retention for a first loss under IAG’s catastrophe program.

What’s impact will this have on FY 2022?

In light of the above and other events that impacted the second half of October, IAG has increased its expectation for FY 2022 net natural perils claim costs. It now expects its claim costs to be $1,045 million, compared to the previous assumption of $765 million.

The $280 million increase in net natural perils claim costs equates to approximately 360 basis points at the reported insurance margin level.

As a result, IAG has lowered its FY 2022 reported insurance margin guidance range from 13.5% – 15.5% to 10% – 12%. Other assumptions remain unchanged.

Despite this, IAG’s Managing Director and CEO, Nick Hawkins, remains optimistic on the company’s outlook.

He commented: “We remain confident in IAG’s operational momentum in FY22, after the strong start in the first quarter that we reported at the recent AGM.”

Today’s decline means the IAG share price is now into negative territory year to date.

The post IAG (ASX:IAG) share price sinks 6% on guidance downgrade appeared first on The Motley Fool Australia.

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• How do you value the IAG (ASX:IAG) share price?
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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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Tyre & Wheel Ltd (ASX: NTD) share price is gaining momentum on Tuesday morning. This enthusiasm has sprung to action following the tyre and wheel retailer announcing an acquisition.

In early trade, shares in the company are being exchanged for $1.24 apiece, up 8.3%. However, the intraday high was set at $1.30 soon after the market opened.

Let’s take a look at the details of the deal.

What’s moving the National Tyre share price today?

Investors are bidding up the price of National Tyre and Wheels shares with ferocity after the company revealed a new acquisition this morning.

According to the release, a share sale and purchase deed was signed yesterday for the acquisition of Black Rubber. The company being acquired operates under two entities, both Black Rubber Pty Ltd and Black Rubber Sydney Pty Limited. National Tyre is set to acquire Black Rubber in its entirety for a total consideration of up to $26.3 million.

Moreover, several facets of Black Rubber have appealed to National Tyre in the making of this deal. Firstly, it expands upon the company’s current offering of commercial tyres for trucks and buses.

In addition, value-add services such as pricing based on cents per kilometre solutions, tyre performance monitoring, fitting at customer depots, and retreading capabilities are all offered by Black Rubber.

Despite being established in 2013, the company to be acquired has expanded operations across three states. These are Western Australia (Perth and Port Hedland), Queensland (Brisbane), and New South Wales (Sydney).

Its revenue from these sites are predominantly from selling truck, bus, and agricultural tyres to commercial fleets and other business to business customers — at 60% of revenue.

National Tyre plans to put Black Rubber’s relationship with Michelin to good use. The target company operates three of the four retread factories in Australia, with authorisation to use Michelin materials and techniques. As such, Black Rubber retreads are planned to be sold through National Tyre’s distribution network.

Looking at the numbers

Bolstering the company’s earnings, Black Rubber is expected to achieve $5.5 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) in FY22. This would be on an anticipated ~$40 million worth of revenue during the period.

Based on this information, National Tyre will be paying 4.7 times Black Rubber’s FY22 forecast EBITDA for the acquisition. However, $5.2 million of the total consideration will be dependent on earnings over the next two financial years.

The National Tyre & Wheel share price is now up nearly 64% in the past year.

The post National Tyre (ASX:NTD) share price surges 8% on acquisition news appeared first on The Motley Fool Australia.

More reading

• Travel is resuming but the Flight Centre (ASX: FLT) share price still lost 7% in October
• Netwealth (ASX:NWL) share price drops on Praemium merger proposal
• What happened for the Afterpay (ASX:APT) share price in October?
• Goodman (ASX:GMG) share price storms 5% higher on earnings guidance upgrade
• 2 ASX shares for the Christmas stocking

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 Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price struggled in October, closing the month down 6.9%.

October wasn’t the best of months for many S&P/ASX 200 Index (ASX: XJO) shares, with the benchmark index also losing 0.2% for the month.

But still, with Australia’s COVID-19 vaccine rollout hitting top gear and domestic and international air travel reopening, some investors are scratching their heads at the ASX travel agency’s October slide.

What put the Flight Centre share price under pressure?

As mentioned, Flight Centre shares weren’t the only ones to slide in October.

Fellow ASX 200 travel share Qantas Airways Limited (ASX: QAN), for example, dropped 5.6% over that same time.

But wider selling pressure aside, the Flight Centre share price could have fallen victim to a bout of profit-taking. That’s because shares gained a whopping 30.8% in September. This came as Australia’s vaccine rollout began to take hold and the government announced international air travel would recommence before Christmas.

Combining the performance of September and October may offer a fairer picture. Over the 2 months, Flight Centre shares finished up 21.8%.

The quarterly report and more debt

Profit-taking aside, the company’s quarterly report likely didn’t stoke a lot of ASX investor enthusiasm. While management pointed to the looming reopening indicating a strong 2022, September sales were still only 27% of what they were pre-pandemic. And the company reported a net operating cash outflow of $41 million for the quarter ending 30 September.

Later in October, Flight Centre came under some renewed pressure when the company announced its successful issue of a $400 million offering in senior unsecured convertible debt with a 2028 maturity.

What is convertible debt?

As my Foolish colleague Zach Bristow explained, “It allows investors the option to convert their debt asset into equity if Flight Centre’s share price hits a certain level… With this particular note issue, the conversion price is $27.30 per share. At that point, bondholders will have the opportunity – but not the obligation – to obtain Flight Centre shares at that price.”

While not always the case, convertible debt has the potential to pull down the share price if the company ends up issuing a significant amount of new shares to its convertible debt holders.

How has the Flight Centre share price performed longer-term?

The Flight Centre share price is up 79% over the past 12 months. That is well ahead of the 24% gains posted by the ASX 200 over that same time.

Year-to-date Flight Centre shares are up 28%.

The post Travel is resuming but the Flight Centre (ASX: FLT) share price still lost 7% in October appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Netwealth Group Ltd (ASX: NWL) share price is edging lower on Tuesday morning.

In early trade, the investment platform provider’s shares are down 0.5% to $17.42.

Why is the Netwealth share price edging lower

The catalyst for the fall in the Netwealth share price this morning is news that the company has made a non-binding indicative proposal to merge with smaller rival Praemium Ltd (ASX: PPS).

According to the release, the company has offered one Netwealth share for every 11.96 Praemium shares plus a cash consideration of $50 million. The latter reflects the expected net proceeds from the sale process of Praemium’s international operations.

Based on the Netwealth share price of $17.94 at the close on 27 October (the day prior to its proposal being made), this implies a base consideration of $1.50 per Praemium share.

This represents a premium of 29% to the Praemium share price on 27 October and a 20% premium to its last close share price.

The base offer values Praemium at $785 million and the transaction at an enterprise value/EBITDA multiple of 55x. Judging by the performance of the Netwealth share price today, the market appears to believe this could be a touch on the expensive side.

What is the rationale for merging?

While the market may have given the news a lukewarm response, management sees many reasons to merge. The release explains that Netwealth expects the transaction to enhance its platform with further scale and accelerate the development of specialist capabilities to capture the long term growth potential of the expanding market for wealth management services. It also sees significant cost and revenue synergies.

Overall, management believes the transaction is compelling and would create substantial value for both sets of shareholders. It would also lead to the creation of the largest independent wealth management platform in Australia by net flows and the leading platform for wealth advisors and investors across all wealth segments.

Combined, the Netwealth-Praemium merged entity would account for $72 billion in Australian platform funds under administration and more than $22 billion in non-custodial assets.

Netwealth’s Joint Managing Director, Matt Heine, commented: “Netwealth is confident that the Proposed Transaction (if implemented) would create a very strong value proposition for existing and future clients and for shareholders of both groups. The Proposed Transaction would ensure that the combined group can continue to lead the industry in net funds flow, technology and client service in what is currently a competitive and rapidly changing platform and advice landscape.”

“Praemium shareholders would have meaningful equity in the combined group and benefit alongside Netwealth shareholders from the strategic benefits as well as the cost and revenue synergies that would arise from the merger,” he added.

What now?

The release explains that Praemium responded to the proposal on Monday, advising that while they acknowledge the benefits of the merger, the proposed transaction does not represent a value it would be willing to recommend to shareholders.

The Praemium share price is up 18% to $1.47 on the news.

The post Netwealth (ASX:NWL) share price drops on Praemium merger proposal appeared first on The Motley Fool Australia.

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• These were the worst performing ASX 200 shares in October
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• 5 things to watch on the ASX 200 on Wednesday
• Here’s why the Praemium (ASX:PPS) share price soared 6% on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Praemium 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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It was a bumpy ride for the Afterpay Ltd (ASX: APT) share price in October as we reflect on another month that has come to pass.

Despite the ups and downs, the buy now, pay later (BNPL) company ended up more valuable than it was at the beginning of the month.

What happened to the Afterpay share price in October?

During October, there was effectively zero noteworthy news from Afterpay directly. However, there were developments in the payments space that likely influenced its valuation.

Since August, the Aussie BNPL player has been joined at the hip to its acquirer, Square Inc (NYSE: SQ). This is due to the nature of the deal involving 0.375 Square shares in exchange for 1 Afterpay share. This has created a direct link between the price of Square stock and Afterpay.

Despite this relationship, Square gained 6.4% in October while the Afterpay share price only increased 3.8%. The dislocation would suggest factors that have more of a bearing on the Australian company than its likely US-based suitor.

As we previously covered a couple of weeks ago, the Reserve Bank of Australia (RBA) published the conclusions of its review of retail payments regulation. The document outlines the suggestion for BNPL services to remove the ‘no surcharge‘ rule. This would mean merchants could pass on the fee charged to them by the likes of Afterpay to the end customer.

Additionally, towards the end of October Westpac Banking Corp (ASX: WBC) lifted the curtain on its BNPL-esque offering. This hints at further competition being built out by the big banks in Australia.

What else?

The Afterpay share price might have received a boost throughout October as Square moved closer to its third-quarter earnings.

Investors might have been buying up shares in Square with the expectation of a favourable earnings result. These quarterly numbers will be revealed on 4 November.

Importantly, analysts have an average revenue estimate of US$4.54 billion for the quarter, which would reflect a 50% increase year on year. Meanwhile, the average estimate for earnings per share (EPS) is 39 US cents. This would be a near fivefold increase in earnings year on year.

Undoubtedly, the Afterpay share price will be in focus following Square’s results.

The post What happened for the Afterpay (ASX:APT) share price in October? appeared first on The Motley Fool Australia.

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

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The Goodman Group (ASX: GMG) share price is storming higher on Tuesday morning.

At the time of writing, the global integrated property company’s shares are up 5.5% to $23.50.

Why is the Goodman share price rising?

Investors have been bidding the Goodman share price higher today following the release of its first quarter update.

According to the release, Goodman has made a strong start in FY 2022. This has been driven by the continuation of structural changes, significant customer demand, and intensification of use of sites in Goodman’s target markets.

Management notes that the consistent execution of its strategy has resulted in increased transactional activity and higher earnings certainty for the full year. This has led to Goodman upgrading its operating earnings per share growth guidance for FY 2022 to be in excess of 15%. This compares to prior guidance of 10% growth.

Other key metrics of note in Q1 include 3.2% like for like net property income (NPI) growth, 98.4% occupancy, $12.7 billion of development work in progress (WIP), and $62 billion of total assets under management (AUM).

Pleasingly, management notes that its outlook remains strong and expects its AUM to continue growing to around $70 billion by June 2022.

Digital economy drives strong growth

Goodman’s CEO, Greg Goodman, commented: “The results of the deliberate positioning of our portfolio over the last decade to adapt to and leverage the changes in the digital economy, are now being realised. Customer demand for high- quality properties close to consumers has never been greater.”

“This is resulting in rental growth, increased development activity, stronger than expected performance from our Partnerships and generally higher levels of profitability, leading to upgraded earnings guidance for FY22,” he concluded.

The Goodman share price is now up 22% in 2021.

The post Goodman (ASX:GMG) share price storms 5% higher on earnings guidance upgrade appeared first on The Motley Fool Australia.

More reading

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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 Bruce Jackson.

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As the market frets over persistent inflation and looming interest rate rises, it’s important to pick ASX shares to buy that can withstand macroeconomic shocks.

One expert is thus putting companies through 2 thematic filters to work out whether they’re worthy of stuffing into the Christmas stocking.

“Two themes we like right now are what we call Stable Compounders and Structural Winners,” said Montgomery Investment Management chief investment officer Roger Montgomery.

“And we have two preferred stocks – one in each theme – that we think will provide solid long-term returns.”

For the record, Montgomery personally believes inflation is not a huge threat to shares, as there will be counter-forces at play.

“The economy is cooling,” he said on the Montgomery blog.

“While investors may be more excited about the negative influence this potentially has on consumer demand and therefore consumer prices, a less obvious impact will come from these people gaining employment. An increase in labour supply will also place downward pressure on wages.”

Longer-term pre-COVID trends of decreasing unionised labour and automation will also conspire to keep a lid on inflation, added Montgomery.

Regardless, here are the 2 ASX shares Montgomery singled out as flag bearers for the ‘stable compounders‘ and ‘structural winners’ themes:

Australians still need petrol stations 

Stable compounders are businesses that offer “growth with a defensive element”.

“They tend to be in stable industries, are market leaders and are under-appreciated by the market.”

One example that Montgomery likes at the moment is Waypoint REIT Ltd (ASX: WPR), which is the landlord for many petrol station sites around Australia.

Its tenants include Coles Group Ltd (ASX: COL)/Shell, 7-Eleven and Liberty.

“Waypoint properties enjoy 100 per cent occupancy, a 10.5-year weighted average lease expiry (WALE) and 3 per cent weighted average rent reviews.”

The stability of its clientele provides for a very reliable income stream.

“Waypoint yields slightly more than 5%, which along with an estimated dividend per share growth equivalent to about 3%, offers a potential total shareholder return of 9%,” said Montgomery.

“Management also announced a $150 million capital return buyback on 30 July 2021 which is subject to the settlement from the sale of a portfolio of properties expected to occur this half.”

The icing on the cake is that Montgomery believes Waypoint is attractive as an acquisition target.

“Additionally, the potential for further revaluations exists with Waypoint’s book of properties appearing to be valued 20% below the prices similar properties are being transacted for in the open market.”

Waypoint shares are down 1.45% this year so far, although that’s only after losing 4.6% in the past 5 business days.

Australians will need more cloud

Structural winners are those ASX shares taking advantage of a long-term societal or consumer trend that is “agnostic” to economic health.

Montgomery named cloud computing and decarbonisation as two such structural trends, while declaring his fund owns shares in Macquarie Telecom Group Ltd. (ASX: MAQ).

“A data centre operator, it benefits from the trend toward cloud services, which is levelling the playing field for small businesses to compete globally and digitally,” he said.

“As the company expands its footprint, the market is also slowly understanding it can sell its last 10% of capacity for 10 times the price of its first 90%. And whether the economy grows or not probably matters little.”

Macquarie shares have risen an impressive 49.2% over the past 12 months.

ASX shares that are structural winners have rewarded investors with growth in the past 10 years, according to Montgomery, and “may continue to do likewise over the next decade”.

“We currently believe, notwithstanding the ever-present risk of a 10% to 15% setback, financial year 2022 will prove to be as lucrative as FY21.”

The post 2 ASX shares for the Christmas stocking appeared first on The Motley Fool Australia.

More reading

• Why this broker sees a 30% upside in the Macquarie Telecom (ASX:MAQ) share price

Motley Fool contributor Tony Yoo 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 owns shares of and has recommended COLESGROUP DEF SET. 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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It has been a difficult few months for the Fortescue Metals Group Limited (ASX: FMG) share price.

Since peaking at a record high of $26.58 in July, the mining giant’s shares have lost 46% of their value and are now trading at $14.33.

Is the Fortescue share price good value now?

While opinion remains divided on the Fortescue share price, one leading broker that appears to see it as dirt cheap is Bell Potter.

According to a note this morning, the broker has retained its buy rating but trimmed its price target to $19.75.

Based on the current Fortescue share price, this implies potential upside of 38% for investors over the next 12 months.

In addition, Bell Potter is forecasting a $2.25 per share fully franked dividend in FY 2022. This represents a 15.7% yield, extending the total potential return to almost 54% for investors.

What did the broker say?

Bell Potter was pleased with Fortescue’s recent first quarter shipments. It notes that the company’s record shipments of 45.6Mt at a C1 cost of US$15.25 per wet metric tonne (wmt) was in line with its estimate of 46Mt at US$15.36 per wmt.

However, taking some of the shine off the quarter was the increasing discount for its low grade ore.

Bell Potter commented: “If there was a negative from the result it was that price realisation in the September quarter dropped to 73% of the Platts 62% CFR index, from 84% qoq. This looks to have been driven by a combination of a lower grade product blend shipped by FMG and a qoq increase in pricing spread between the 62% Fe benchmark price and lower grade benchmarks.”

And while this and increasing Fortescue Future Industries costs have led to earnings estimate reductions, Bell Potter remains very positive on the Fortescue share price.

It explained: “Higher pricing discounts and increased costs expensed by Fortescue Future Industries (FFI) are the primary drivers of the changes to our earnings forecasts. Earnings for FY22, FY23 and FY24 are cut 8%, 1% and 6% respectively. Our FY22 dividend is lowered 8%, to A$2.25/sh and our NPV-based valuation is lowered 5%, to $19.75/sh. Strong free cash flows, good cost control and an ‘on-track’ production performance emphasise the quality of the business and we retain our Buy recommendation.”

The post This broker thinks the Fortescue (ASX:FMG) share price is dirt cheap appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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This month could be the perfect time to look at the two ASX shares in this article which may generate significant growth in FY22 and beyond.

Both of these companies are smaller than the ASX blue chips like Australia and New Zealand Banking Group Ltd (ASX: ANZ) and BHP Group Ltd (ASX: BHP). However, they may have the ability to produce more capital growth because of their smaller starting size.

Lovisa Holdings Ltd (ASX: LOV)

This is a business that sells affordable jewellery to customers.

It has over 500 stores across the world. Whilst the biggest number (153 at the end of FY21) is in Australia, it has growing store networks in Europe, Asia, the Middle East, South Africa, the UK and the USA. COVID-19 caused disruption to growth, but the company has plans to continue the rollout. The Beeline acquisition helped with the expansion into Europe, with 87 stores converted to Lovisa branding.

FY21 demonstrated rising profitability at various levels of the business. Revenue grew 18.9% to $288 million, pre AASB16 earnings before interest and tax (EBIT) increased 39.4% to $42.7 million and net profit after tax (NPAT) grew by 43.3% to $27.7 million. The company also returned to paying a dividend.

In the first eight weeks of FY22, the ASX share saw that total sales were up 56% year on year, despite lockdowns in some locations.

Whilst 2021 calendar year store opening growth is expected to be slowed due to logistics challenges, it’s focused on opportunities for increasing its store network and its digital presence. It currently has 551 stores.

The broker Morgan Stanley thinks that the company is a buy. It believes that the Lovisa share price is valued at 36x FY23’s estimated earnings.

Healthia Ltd (ASX: HLA)

As the name may suggest, Healthia is a healthcare business. It is aiming to build Australia’s leading diversified healthcare business across the divisions of ‘bodies and minds’, ‘feet and ankles’ and ‘eyes and ears’.

The company has a two-pronged approach to achieve growth.

The first is with its organic growth. It says its model has demonstrated the ability to accelerate organic growth as a result of a focus and investment in industry-leading education, tools and support for clinicians and team members. In FY20 it achieved organic revenue growth of 5.3% and in FY21 it was 9.1%.

The second area of growth is the ASX share’s acquisitions to expand and diversify its operations. Part of that strategy is to use ‘clinic class shares’ to retain and incentivise clinicians. These shares are non-voting, but entitle the holder to a share of any dividend declared.

One of the latest acquisitions has been Back in Motion (BIM) for a total cost of $88.4 million, being $64.6 million in cash and $16.1 million of clinic class shares, as well as $5.8 million of new shares and $1.9 cash payable after completion of the acquisition. BIM is one of the largest and fastest-growing physiotherapy businesses in Australia and New Zealand.

The BIM deal made Healthia the number one provider of physiotherapy services in Australia with a total of 122 physiotherapy clinics. In FY21, BIM generated underlying revenue of $62.9 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $12.3 million respectively.

In FY21, the Healthia business reported underlying revenue growth of 51.8% to $140.41 million and underlying EBITDA of $21.47 million (up 62.3%). Underlying net profit grew 91.4% to $8.86 million. The ASX share also paid a full year dividend of 4.5 cents per share.

The post 2 impressive ASX shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

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