Insights

Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy

Tuas and MAAS Group are two ASX shares that WAM likes.
The post Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy appeared first on The Motley Fool Australia. –

The fund manager Wilson Asset Management (WAM) has told investors about two compelling ASX shares that it has in its portfolio.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

There’s also one called WAM Capital Limited (ASX: WAM) which targets “the most compelling undervalued growth opportunities in the Australian market.”

The WAM Capital portfolio has delivered an investment return of 16.7% per annum since inception in August 1999, before fees, expenses and taxes. This gross return outperformed the S&P/ASX All Ordinaries Accumulation Index return of 8.7% per annum over the same timeframe.

These are the two ASX shares that WAM Capital outlined in its most recent monthly update:

Tuas Ltd (ASX: TUA)

Tuas was created after the merger between TPG Telecom and Vodafone Hutchison Australia last year.

In its first financial year, Tuas revealed that it tripled its subscriptions to reach a total of 392,000 paid active subscriptions on 31 July 2021. It reached a market share of 4.5%.

The subscription growth underpinned “strong” revenue growth for the ASX share, increasing by SG$30 million since October 2020 to SG$34.3 million while also enabling the company to achieve breakeven earnings ahead of market expectations. TPG Singapore, the operational business of the group, achieved a positive earnings before interest, tax, depreciation and amortisation (EBITDA) of S$0.9 million for the 12 months to 31 July 2021.

WAM says that Tuas is set to continue growing as it “tracks positively” in FY22. The fund manager believes the market is yet to fully appreciate the incremental operating leverage as further subscribers are added to the largely fixed cost base.

Maas Group Holdings Ltd (ASX: MGH)

WAM described MAAS Group as a leading independent and vertically integrated construction materials, equipment and services provider with a property development arm.

The fund manager pointed out that in September the ASX share announced it had signed an agreement for the acquisition of Earth Commodities hardrock quarry operation in Gladstone, enabling the company to realise synergies with its Central Queensland construction materials business and increase its growth opportunities in the year ahead.

WAM noted the strategically located quarry assets, significant unutilised capacity and a substantial pipeline of infrastructure spend expected over the next three to five years. It’s that combination of things that makes the fund manager believe the organic growth outlook for the business is compelling and expects this to be further increased by bolt-on acquisitions. The investment team believe there is potential for corporate action within the property arm.

The post Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tuas right now?

Before you consider Tuas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tuas wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

WAM Capital (ASX:WAM) share price hits 52-week high amid investment update
These were the 5 top performing ASX shares in September

What’s going on with the Myer (ASX:MYR) share price?
WAM Capital (ASX:WAM) share price hits new high on proposed takeover bid
Why Beach, Collins Foods, Origin, & Tuas shares are racing higher

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 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!