Stock #1: Select Harvests (ASX: SHV) – A Comeback Story
https://selectharvests.com.au/
Investment Thesis
1. Leading Position in a Growing Market
Select Harvests is Australia’s largest almond producer and the third-largest globally. The company operates extensive orchards across Victoria, New South Wales, and South Australia, positioning it well to capitalize on rising global demand for almonds, driven by consumer preferences for healthy and plant-based foods.
2. Operational Efficiency and Yield Improvements
The company has implemented strategies to enhance production volumes and cost efficiencies. Recent horticultural investments, such as frost protection measures, have led to significant yield improvements and cost reductions. A 32% production increase was achieved through expanding almond-bearing acreage and a 23% yield increase.
3. Favorable Industry Dynamics
Global almond consumption has grown by 6-8% annually, fueled by health-conscious consumers and the shift toward plant-based diets. Additionally, California’s ongoing water scarcity issues (responsible for 80% of global almond supply) may constrain future production, potentially benefiting Select Harvests.
4. Positive Outlook and Strategic Initiatives
Despite recent weather-related challenges, Select Harvests maintains a positive crop outlook. The company focuses on:
✅ Enhancing orchard yield and quality
✅ Securing water resources
✅ Reducing operational costs
✅ Exploring new growth opportunities
5. Financial Position and Capital Management
The company maintains a strong balance sheet and has undertaken capital-raising initiatives to support expansion. A recent AU$80 million capital raise will help boost processing capacity and operational efficiencies.
📌 Summary: Select Harvests’ leading market position, operational efficiencies, favorable industry trends, and strong financial management make it a compelling investment opportunity.
LA Wildfires – Industry Impact
The recent Los Angeles wildfires have not directly impacted almond production, as the primary almond-growing regions in California’s Central Valley lie north of LA. However, wildfires contribute to broader environmental challenges affecting agriculture statewide.
Key concerns include:
🌱 Severe drought conditions – 100% of Los Angeles County is drought-affected, with December 2024 ranking as the 10th driest month in 130 years.
🌱 Almond trees’ high water requirements – Prolonged drought may reduce yields and quality.
🌱 Smoke exposure – Research shows wildfire smoke can negatively impact nut production.
📌 Conclusion: While the LA fires themselves are not an immediate threat, ongoing drought conditions and climate concerns pose challenges to California’s almond industry.
Stock #2: GenusPlus Group (ASX: GNP) – In the Right Place at the Right Time
Investment Thesis
1. Strategic Positioning in Growth Sectors
GenusPlus operates in power and communications infrastructure, uniquely positioned to capitalize on Australia’s investment in:
⚡ Renewable energy projects
⚡ Battery Energy Storage Systems (BESS)
⚡ Power transmission modernization
Its expertise in engineering, procurement, and construction (EPC) gives it a competitive edge in Australia’s energy transition.
2. Strong Financial Performance
📈 FY24 net profit: $19.3M (up from $13.4M in FY23)
📈 EPS rose to 10.8 cents, reflecting efficient operational execution and expansion
3. Major Contract Wins
GenusPlus has secured high-value contracts, including:
✅ 600MW/1,600MWh BESS project for Melbourne Renewable Energy Hub (~$200M)
✅ Defense infrastructure contract ($16M) for Shoalwater Bay
4. National Expansion and Diversification
Originally focused in Western Australia, GenusPlus has expanded nationally via acquisitions and organic growth. New Queensland branches and diversification into defense infrastructure enhance its market reach.
5. Experienced Leadership & Insider Confidence
🚀 Managing Director David Riches has made significant insider share purchases, reinforcing strong confidence in the company’s outlook.
📌 Summary: GenusPlus’ positioning in high-growth sectors, solid financials, major contracts, national expansion, and strong leadership support a compelling investment thesis.
Stock #3: Kina Securities (ASX: KSL) – Growth, Income & Value
https://investors.kinabank.com.pg/Investors/
Investment Thesis
1. Diversified Financial Services Portfolio
Kina Securities operates in banking, finance, and wealth management, serving PNG’s growing financial sector.
2. Strong Financial Performance
💰 P/E ratio: 6.87
📈 Return on Equity (ROE): 16.8%
3. High Dividend Yield
📊 7.7% dividend yield, making Kina a strong income play.
4. Market Position in PNG
🏦 Second-largest banking institution in PNG with strong local brand recognition.
5. Digital Transformation Strategy
📲 Investment in digital banking, mobile services, and fintech partnerships strengthens competitive positioning.
📌 Summary: Kina offers a blend of growth, income, and value, supported by strong financials, high dividends, and strategic digital investments.
Stock #4: Evolution Mining (ASX: EVN) – Undervalued Compared to Peers
https://evolutionmining.com.au/
Investment Thesis
1. Strong Asset Portfolio & Operational Excellence
🌍 Top-tier mining assets: Cowal, Ernest Henry, Northparkes, Mungari, and Red Lake
📈 FY24 net profit: $422M
🏅 Gold production: 716,700 oz | Copper: 67,862 tonnes
2. Growth & Diversification
🛠 80% stake in Northparkes boosts copper output by 50%
🔀 Copper now 30% of total revenue (reduces reliance on gold)
3. Financial Strength & Shareholder Returns
💰 $716M liquidity | Gearing down from 33% to 25%
💵 Final dividend doubled to 5 cents per share
📌 Summary: Evolution’s diversified asset portfolio, strong financials, and strategic copper expansion make it undervalued relative to peers.
Stock #5: Cuscal Limited (ASX: CCL) – A New Listing with a Low Valuation
Investment Thesis
1. Payments Infrastructure Leader
🏦 Key player in Australia’s payments ecosystem | Connects banks, fintechs, and corporates.
2. Competitive Moat
🔒 Only non-major bank offering end-to-end payment processing.
3. Strong IPO & Financial Performance
📊 FY24 revenue: $284.5M (+18%) | Net profit: $32.9M
📈 IPO raised $337M for growth and system enhancements.
4. Expansion & Growth Potential
🚀 Investing in regulated data services & market share growth.
📌 Summary: Cuscal’s dominance in payments, strong IPO, and growth strategy make it a potentially attractive long-term investment.
Final Thought: 5 Stocks Offering Growth and Value
In a market where growth, resilience, and strategic positioning define success, these five ASX-listed companies showcase compelling investment cases across diverse sectors. From Select Harvests’ potential almond industry tailwinds to GenusPlus’ role in Australia’s energy transition, each presents a unique opportunity backed by strong fundamentals. Kina Securities offers a rare mix of value and income, Evolution Mining is leveraging its copper expansion for long-term upside, and Cuscal’s payments infrastructure dominance sets it apart as a fresh listing with strong potential. While risks remain, particularly with external factors like climate change and economic conditions, these companies may just have the strategies in place to navigate challenges and capitalise on emerging opportunities.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
5 Stocks Offering Growth and Value