Insights

This ASX share doubled this year, but plenty more to come: experts

If you think there will be a construction boom in Australia after lockdowns lift, this stock could be right up your alley.
The post This ASX share doubled this year, but plenty more to come: experts appeared first on The Motley Fool Australia. –

There is an ASX share that’s more than doubled its price this year, but some experts reckon it’s perfectly positioned to grow even further in the post-COVID world.

Wilson Asset Management portfolio managers Matthew Haupt, Catriona Burns and Oscar Oberg said in a memo to clients that 2 of their funds currently held Maas Group Holdings Ltd (ASX: MGH) shares.

“The Australian Securities Exchange (ASX) has a rich history of founder-led companies delivering stand-out returns for investors,” they wrote.

“MAAS Group is one such company that demonstrates the key attributes of a successful founder-led company which we believe has a significant runway for value creation over the medium term.”

After floating on the ASX in December, MAAS shares started the year at $2.65. That’s risen more than 103%, to trade at $5.43 on Friday morning.

What is MAAS Group?

Former South Sydney NRL player Wes Maas had no vocational qualifications when his rugby league career ended prematurely due to a serious injury in 2002.

So he spent his entire savings to buy a bobcat, which he hired out to construction businesses. 

The rest is history.

“The group has expanded significantly since, culminating in the successful initial public offering [IPO] of the business in December 2020 at $2 per share at an implied valuation of over $600 million,” said the Wilson portfolio managers.

“Wes retained 69% of the shares in the company while employees were also granted significant equity.”

Haupt, Burns and Oberg love that management and staff own so much of the business.

“‘Skin in the game’ ensures strong alignment with shareholders, whilst underpinning the entrepreneurial spirit of the organisation.”

Far from just a single bobcat for hire, the mammoth business now provides “vertically integrated” construction materials and equipment services, as well as undertaking property development.

How can MAAS shares grow further?

Despite the significant upwards run in stock price, the Wilson fund managers reckon MAAS plays in segments that are set to take off after this COVID-19 Delta strain is put behind us.

“With strategically located quarry assets, significant latent capacity and a substantial pipeline of infrastructure spend expected over the coming 3 to 5 years, we believe the organic growth outlook for the business is compelling.”

There is further potential with acquisitions on top of organic growth.

“This week, MAAS Group announced it had signed an agreement for the acquisition of Earth Commodities hard rock quarry operations in central Queensland, enabling the company to realise synergies within its central Queensland construction materials business and enhance its growth opportunities in the year ahead.”

The potential of the property development arm, the Wilson experts think, is not well understood by investors.

“The property development business remains an underappreciated aspect of MAAS Group, providing exposure to high growth corridors across both residential and commercial real estate,” they wrote.

“And we see potential for separate listed vehicles in the future.”

The post This ASX share doubled this year, but plenty more to come: experts appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks

Rio Tinto (ASX:RIO) share price breaks below $100 for the first time since November 2020
Why the AMA (ASX:AMA) share price is lifting 5% on Friday
Broker tips Aristocrat Leisure (ASX:ALL) share price to keep rising
How has the Afterpay (ASX:APT) share price performed since reporting results?

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 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!