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Becoming a share market millionaire is a dream that I’m sure many Australians have.

The good news is that it is attainable for anybody if you have time, funds to invest, and a plan.

But could you become a millionaire in just a decade by investing in ASX 200 shares? Well, the short answer is yes.

Becoming a millionaire in 10 years with ASX 200 shares

As of the end of 2021, over the last three decades, the Australian share market has generated an average annual return of 9.6% per annum. This is broadly in line with the historical returns of global share markets.

And while past performance does not guarantee future returns, I would be disappointed if we didn’t average something similar over the next 10 years.

Based on this, if you made a single $400,000 investment into the share market and earned 9.6% per annum for 10 years, your portfolio would grow to be worth just over $1 million.

Of course, very few people have that level of capital ready to sink into the share market, so that isn’t viable for all.

If you’re lucky enough to have $50,000 available to invest every year, then those investments would eventually grow to be worth $1 million after 10 years if you earned the same level of return.

What if you don’t have this level of capital?

If you don’t have that amount of capital to invest, your quest to become a share market millionaire in the space of 10 years will come down to luck, I’m afraid.

If you can identify a small cap ASX share that has the potential to become a 100-bagger (generate a return 100 times your original investment), then you could become a millionaire by investing $10,000.

These investments are very rare, but they do exist. For example, lithium giant Pilbara Minerals Ltd (ASX: PLS) has generated a return of 63.5% per annum over the last 10 years despite its recent pullback. This would have turned $10,000 into approximately $1.4 million.

Slow and steady wins the race

Investors that don’t have a huge amount of capital to invest may be better taking the slow and steady approach instead of relying on luck.

By investing $10,000 each year for a period of 24 years, you would have grown your portfolio to over $1 million if you earned an average annual return of 9.6%.

The post Could investing in the ASX 200 make me a millionare within a decade? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• The top five ASX 200 shares in Macquarie’s model portfolio
• Why is the Flight Centre share price in the red today?
• 3 ASX lithium shares to buy with 40%+ upside: analysts

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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If you’re interested in investing at the small side of the market, then you may want to look at the ASX shares below.

These small cap ASX shares have been rated as buys and tipped to have major upside potential in 2023. Here’s what you need to know about them:

Catapult Group International Ltd (ASX: CAT)

The first small cap ASX share to look at is Catapult. It is a global sports technology company that provides elite sporting organisations with real time data and analytics to monitor and measure athletes. It has been growing its annualised contract value (ACV) at a solid rate in recent years. Pleasingly, this has continued in FY 2023 despite the tough economic environment. In November, it reported a 21% increase in ACV on a constant currency basis to US$70 million during the first half. Another positive was its record-level retention, with ACV churn at just 4%. Looking ahead, management expects its full year ACV growth to be at least 20% with ACV churn in the range of 4.5% to 6%.

The team at Canaccord Genuity appears to have been pleased with its performance. The broker currently has a buy rating and $1.50 price target on the company’s shares. This compares to the latest Catapult share price of 72 cents.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals. While the tough economic environment has stifled its growth in FY 2023, it is still growing a solid rate. First quarter revenue was up 8% over the prior corresponding period to $16.1 million. This was driven by an increase in average revenue per user, job volumes, and subscriptions.

Analysts at Goldman Sachs are very positive on the company due to their belief that the company can capture a significant portion of industry advertising spend in the future. In fact, the broker has likened Hipages to the early days of Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA).

Goldman currently has a buy rating and $2.10 price target on its shares. This is more than double the current Hipages share price of 97.5 cents.

The post These exciting small cap ASX shares could double in 2023: analysts appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares smashing the market on Friday

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 Catapult Group International and Hipages Group. The Motley Fool Australia has positions in and has recommended Catapult Group International and Hipages Group. 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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If you’re looking for dividend shares to buy, then the two listed below could be worth checking out.

Both have been named as buys by analysts recently and tipped to provide very attractive yields. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

This footwear and apparel retailer could be an ASX dividend share to buy right now.

It is the owner of a growing portfolio of retail brands such as Hype DC, The Athlete’s Foot, Glue, Platypus, Nude Lucy, Sneaker Lab, and Stylerunner.

Goldman Sachs is a fan of the company and highlights that its “diversified product exposure includes a number of product categories which we believe are resilient in the current cycle including youth footwear (Platypus, Hype), youth apparel (Glue, Nude Lucy), performance footwear (TAF), and a higher income consumer (Stylerunner).”

In light of this, the broker believes the company is well-placed to pay fully franked dividends of 10.2 cents per share in FY 2023 and 11.4 cents per share in FY 2024. Based on the current Accent share price of $1.66, this will mean yields of 6.1% and 6.8%, respectively.

Goldman also sees plenty of upside for its shares in 2023 with its buy rating and $2.20 price target.

Coles Group Ltd (ASX: COL)

Another ASX dividend share that has been tipped as a buy is Coles.

It is of course one of Australia’s largest supermarket and liquor store operators with over 800 supermarkets and over 900 liquor retail stores.

But Coles isn’t stopping there and continues to grow its network each year. In addition, the company is aiming to grow its online operations and make its overall operations more efficient with the construction of automated distribution centres.

Morgans is positive on the company’s outlook and has an add rating with a $19.50 price target on its shares. It is also expecting attractive fully franked dividends per share of 64 cents in FY 2022 and 66 cents in FY 2023.

Based on the current Coles share price of $16.80, this implies yields of 3.8% and 4%, respectively.

The post Brokers say these top ASX dividend shares are buys for 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 defensive ASX dividend shares to buy for 2023: experts
• Bell Potter names the best ASX shares to buy in 2023
• How to swap your job for $75,000 in retirement income using ASX dividend shares
• Yields of up to 7%… 3 ASX dividend shares I’d buy to hold for 10 years
• These quality ASX dividend shares are buys: Goldman Sachs

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 positions in and has recommended Coles Group. The Motley Fool Australia has recommended Accent Group. 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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Now that a new year is imminent, I think it’s time for some candour. So let’s discuss my three largest ASX share positions and what I intend to do with them in the new year of 2023.

My 3 largest ASX share positions

My third largest position: WAM Global Ltd (ASX: WGB)

WAM Global is a listed investment company (LIC) that was first listed on the ASX back in 2018. It is run by Wilson Asset Management and aims to invest in a basket of undervalued growth shares from around the world.

Unfortunately, WAM Global hasn’t had a very successful life on the ASX so far. Today, its share price is well under the $2.20 it first floated at in mid-2018. Saying that, WAM Global has managed to build an impressive dividend track record, raising its payouts from 7 cents per share in 2020 to 11 cents per share in 2022.

Sadly, I will be looking to exit this position in 2023. It hasn’t delivered the growth I had hoped for, and I would have been far better putting my money in an index fund.

Additionally, although Wilson Asset Management doesn’t make WAM Global’s fee easy to find, I am no longer happy paying the rather steep and (in my opinion) indefensible 1.25% slug that this LIC charges every year for this chronic underperformance.

My second largest ASX share: VanEck Vectors Wide Moat ETF (ASX: MOAT)

This ASX exchange-traded fund (ETF) has pride of place in my portfolio. It’s an investment I have owned for a very long time, and one I can’t ever see selling. This ETF is not an index fund. Rather, it invests in a relatively concentrated portfolio of US shares.

These shares are selected for possessing an intrinsic competitive advantage, or ‘moat’. This is a concept popularised by the legendary Warren Buffett and gives most winning shares their edge. This ETF has smashed the returns of most index funds over the years, and thus an investment I am very happy to hold going into 2023.

My largest share: Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Unlike WAM Global, this is an ASX share I would love to own way more of. Soul Patts is an investing conglomerate with an incredibly diverse portfolio of both listed and unlisted assets. This gives me instant diversification through just one ASX share.

Soul Patts has a very impressive performance track record. It has given its investors market-crushing returns for decades, as well as an annual dividend pay rise every year since 2000. For these reasons, I am proud to carry Soul Patts as my largest ASX holding into 2023

The post My 3 largest ASX share positions heading into 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares I’m never selling
• $300 a month in these 3 ASX shares could make you a millionaire by retirement
• No savings at 45? I’d use the Warren Buffett method to build retirement wealth
• 25% of my retirement portfolio is in these 5 ASX shares: Here’s why I believe they’re winners for 2023 and beyond
• 3 quality ETFs for ASX investors to buy next year

Motley Fool contributor Sebastian Bowen has positions in VanEck Morningstar Wide Moat ETF, Wam Global, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. 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 has been a rough year for a number of ASX shares. A return of 0% would seem pretty good when some names have fallen by 40%, 50%, or even more. But, a handful of names are close to their 52-week highs.

Just because something has gone up doesn’t mean it’s going to keep rising. But, with a few of them, I believe they could keep doing well in 2023 and potentially beyond.

So, let’s get into those ideas.

Ridley Corporation Ltd (ASX: RIC)

Ridley says that it’s “Australia’s leading provider of high-performance animal nutrition solutions”.

“Ridley has been an integral part of Australian agriculture for almost 30 years, building strong partnerships with suppliers, customers, and local communities,” the company says.

It works with a variety of farmers, from the “huge pastoral farms of Northern Australia, to the backyard hobbyists, to the entrepreneurs, to the enthusiasts”.

The Ridley share price has gone up by 30% in 2022 to date.

Management believes FY23 first-half earnings before interest, tax, depreciation and amortisation (EBITDA) will improve year over year thanks to positive contributions from its growth initiatives, as well as favourable product pricing.

It said being the market leader is providing scale benefits, enabling it to employ specialists and adopt technology. The ASX share said its product and customer mix means it can provide earnings resilience through “weather, diseases, and market cycles”.

The company wants to provide an improved customer experience, which can help increase demand and improve margins.

According to the estimate on Commsec, it’s priced at under 16x FY23’s estimated earnings.

Qantas Airways Limited (ASX: QAN)

The Qantas share price has managed to produce a rise of 15% over 2022.

I think the airline has done very well in terms of making profit and improving its balance sheet position.

However, the ASX share is expecting yet more capacity to return, which could be very useful in capturing more passenger demand. Don’t forget, not all of its international capacity has returned to pre-COVID levels yet.

The oil price has been drifting lower over the last few months. It’s close to pre-Ukraine war levels, which could improve Qantas’ operating costs in the year ahead. The cheaper it is to fly, the more this helps the airline’s profit margins.

China’s reopening could lead to more Chinese tourists using Qantas planes as well, which could be a further boost.

In the first half of FY23, Qantas is expecting to make between $1.35 billion to $1.45 billion of underlying profit before tax.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk is a leading infant formula company. The A2 Milk share price has risen by around 25% since the start of the year. It’s up almost 60% over the past six months.

The ASX share is expecting revenue and profit growth in FY23, as it passes on price increases to customers.

But, news of a return of Chinese tourists could be a useful boost for the ASX share in time. Daigou buyers could return, as well as stronger demand for A2 Milk products.

The post 3 ASX shares near 52-week highs I think can climb higher appeared first on The Motley Fool Australia.

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More reading

• Why is the Flight Centre share price in the red today?
• I think these 3 ASX shares could benefit from a Chinese tourism boom
• Top brokers name 3 ASX shares to buy next week
• Could A2 Milk shares pay a dividend in 2023?
• Why Qantas shares could be a bargain buy – Goldman Sachs

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) followed Wall Street’s lead and dropped deep into the red. The benchmark index fell 0.95% to 7,020.1 points.

Will the market be able to bounce back from this on Friday and end the year on a high? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set to end the week and year in a very positive fashion following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 67 points or 0.95% higher this morning. In late trade in the United States, the Dow Jones is up 1.2%, the S&P 500 has risen 1.9%, and the Nasdaq has jumped 2.65%. This was driven by the release of US jobs data.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$78.45 a barrel and the Brent crude oil price is down 1.1% to US$82.33 a barrel. Chinese demand fears weighed on prices.

Tech shares to rebound

It looks set to be a great finish to a disappointing year for ASX tech shares on Friday following a very strong night on the NASDAQ index. The tech-focused index is up 2.65% at the time of writing, which should be good news for tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) today.

Gold price rises

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,824.70 an ounce. Traders were buying gold after US jobs data appeared to support less aggressive rate hikes.

Lithium shares on watch

It has been a tough few weeks for ASX 200 lithium shares such as Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE). But they look set to end the year with a strong session after their US listed peers charged higher overnight. For example, at the time of writing, US$22 billion lithium giant SQM is trading 3% higher.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• The top five ASX 200 shares in Macquarie’s model portfolio
• Why is the Flight Centre share price in the red today?
• 3 ASX lithium shares to buy with 40%+ upside: analysts
• Brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in Allkem, Altium, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 S&P/ASX 200 Index (ASX: XJO) finished today 0.94% in the red. But three ASX mining shares closed trade smashing the index.

The Sayona Mining Ltd (ASX: SYA), Metals X Limited (ASX: MLX) and Strategic Elements Ltd (ASX: SOR) share prices were all soaring today.

Let’s take a look at these three ASX mining shares in more detail.

Sayona Mining

Sayona Mining shares lifted 7.35% today. However, Sayona shares sank 11% in yesterday’s trade. Investors may have been buying up Sayona shares following recent declines. The Sayona Mining share price has tumbled 48.45% since 13 September. Looking ahead, Sayona recently announced its North American Lithium operation is on track to restart production in the first quarter of 2023.

Sayona shares have soared 40% in the last year.

Strategic Elements

Strategic Elements shares soared 51.11% on Thursday. In today’s news, Strategic Elements advised the market of “outstanding battery development success”. The company reported successful developments in Energy Ink, a new power source that produces electrical energy from moisture in the air.

Commenting on the news, managing director Charles Murphy said:

The technology is evolving at a rapid rate. It was a fantastic result to clearly produce more than enough power compared to a leading existing glucose monitoring patch being used by millions of people worldwide and to have the excess potential for a manufacturer to include more advanced sensing or other features.

The Strategic Elements share price has descended more than 30% in the last year.

Metals X Limited

The Metals X share price leapt 7.81% today. The company did not released any news to the market today. Metals X touts itself as Australia’s biggest tin producer and has a 50% equity interest in the Renison Tin Operation in Tasmania. Tin futures are up 0.02% today and have leapt 7.63% in the last month, Trading Economics data shows. In a recent presentation, Metals X said it is debt free.

Metals X shares have lost nearly 27% in the last year.

The post 3 ASX mining shares that left the index in the dust on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why Bowen Coking Coal, Domino’s, Sayona Mining, and Strategic Elements are rising
• Why did the Sayona Mining share price sink 11% today?
• Here are the 10 most shorted ASX shares
• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why
• Why has the Sayona Mining share price tanked 10% in 2 weeks?

Motley Fool contributor Monica O’Shea 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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If you’re wanting to strengthen your portfolio in 2023 with some ASX 200 blue chip shares, you may want to look at the two listed below.

Both have recently been named as buys by brokers. Here’s why they could be blue chip shares to buy:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group.

It is a leading integrated commercial and industrial property company with operations across the world. Among its portfolio are warehouses, data centres, large scale logistics facilities, and business and office parks.

Over the last decade, demand for Goodman’s properties has been strong and has underpinned sky high occupancy rates and solid earnings growth.

Pleasingly, Goldman Sachs expects this strong growth to continue in FY 2023. In fact, the broker believes “GMG can deliver FY23 growth ahead of initial guidance” of 11%. This is due to “strong development WIP at strong margins” and further assets under management growth.

Goldman currently has a buy rating and $24.20 price target on the company’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another blue chip ASX 200 share that is highly rated is Treasury Wine. It the global wine giant behind a range of popular brands including Penfolds.

Treasury Wine certainly has been through a lot in recent years (kicked out of China/COVID), but has overhauled its business very successfully. So much so, the team at Morgans believe “the foundations are now in place for TWE to deliver strong earnings growth” in the coming years.

As a result, it will come as no surprise that Morgans has named Treasury Wine as a “key pick”.

Its analysts currently have an add rating and $15.71 price target on its shares.

The post Brokers name 2 high quality blue chip ASX 200 shares to buy appeared first on The Motley Fool Australia.

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More reading

• 3 big ASX share winners in 2022 that could soar again next year
• Bell Potter names 3 stellar ASX 200 shares to own in 2023
• Looking to buy ASX shares for your kids this Christmas? I think these are great options
• Here’s why analysts rate these blue chip ASX 200 shares as buys
• Experts say these strong blue chip ASX 200 shares are buys for 2023

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 recommended Treasury Wine Estates. 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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One thing the Australian share market is not short of is dividend shares.

And while the average yield of approximately 4% is very attractive, some shares could offer even greater yields in 2023.

Two high-yield ASX 200 income shares are listed below. Should you buy them for an income boost?

Harvey Norman Holdings Limited (ASX: HVN)

The first ASX 200 income share to look at is retail giant Harvey Norman.

With its shares down 18% this year, Goldman Sachs believes they are trading at an attractive level.

This is due to the broker’s belief that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics. Goldman expects this to lead to above consensus earnings and big dividends in the near future.

As a result, the broker has a buy rating and $4.80 price target on its shares.

In addition, Goldman is expecting fully franked dividends of 38 cents per share in FY 2023 and 32 cents per share in FY 2024. Based on the current Harvey Norman share price of $4.12, this will mean yields of 9.2% and 7.8%, respectively.

Whitehaven Coal Ltd (ASX: WHC)

Another ASX income share that has been tipped as a buy is Whitehaven Coal.

It is a coal miner that is printing money at the moment thanks to sky high coal prices.

And with coal prices expected to remain strong in the near term, Whitehaven Coal appears well-placed to reward its shareholders with big dividends in 2023 and 2024.

In fact, the team at Morgans is forecasting fully franked dividends per share of 115 cents in FY 2023 and 95 cents in FY 2024. Based on the latest Whitehaven Coal share price of $9.31, this will mean yields of 12.3% and 10.2%, respectively.

Morgans also sees plenty of value on offer with its shares. It has an add rating and $11.20 price target on them.

The post 9% and 12% dividend yields! Should I buy these ASX 200 income shares? 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 positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. 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 ASX share market could soon offer up a few opportunities as China reopens its borders and lessens travel restrictions on its citizens.

China had been living through lockdowns to limit the spread of COVID-19. But, now restrictions are being rapidly and widely removed.

According to reporting by media, including CNBC:

China’s National Health Commission announced late Monday that starting Jan. 8, inbound travellers would no longer need to quarantine upon arrival on the mainland, ending a policy of nearly three years.

Authorities also said they would allow Chinese citizens to resume travel, without providing details on timing or process.

During the pandemic, Beijing prevented Chinese citizens from getting passports or leaving the country unless they had a clear reason, typically for business.

CNBC also reported that within half an hour of China’s announced policy change searches for travel abroad surged to a three-year high, according to Trip.com Group. Australia was one of the top 10 destinations outside the mainland with the fastest-growing search volume.

If there’s going to be a deluge of Chinese visitors returning to Australia’s shores, then there may be a few ASX shares that could noticeably benefit and get an earnings boost.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has gone on a good run in 2022 – it’s up more than 20% to date.

But, it’s still down around 65% since early July 2020.

One of the main problems for the company has been a large reduction in infant formula buying by daigou. If Chinese tourists return to Australia to pre-COVID levels, it could get a good boost.

Remember that in FY21, A2 Milk saw revenue sink 30.3% to $1.21 billion, while net profit after tax (NPAT) dropped 79.1% to $80.7 million. I’m not suggesting that all of A2 Milk’s lost earnings will suddenly return, but I do think Chinese tourists could be a boost for the business.

Idp Education Ltd (ASX: IEL)

The student placement and international English language testing business could benefit from a return of Chinese students. Remember, in FY19 the ASX share generated $104.3 million of revenue for students in Australia. In FY22 this figure was only $81.8 million.

If Chinese students return to Australia (and other destinations that Idp Education services), then its revenue and earnings could get a useful boost.

With how much operating leverage the company has, new revenue could translate into a much larger increase in net profit, potentially boosting the Idp Education share price.

Auckland International Airport Limited (ASX: AIA)

New Zealand used to see hundreds of thousands of visitors from China each year. But when they stopped coming, Auckland Airport lost a good portion of its earnings.

In the monthly update for October 2022, the business noted that total passenger numbers were only 72% of pre-COVID times, with Chinese visitors only being 13% of the pre-COVID total.

If Chinese visitors return to close to pre-COVID levels, it could be a real boost for the ASX share’s earnings. However, it was more than just Chinese passengers that made up passenger numbers, so we may need to see passengers from other countries recover as well.

The post I think these 3 ASX shares could benefit from a Chinese tourism boom appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares I’d buy if the stock market crashes
• Could A2 Milk shares pay a dividend in 2023?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• What drove the A2 Milk share price 18% higher in November?

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 Idp Education. The Motley Fool Australia has recommended A2 Milk. 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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