When the markets are down and most of the stocks hover near fair valuations, the opportunities emerge to buy growth shares. Among the growing companies to invest in now are
Macquarie Group Limited (ASX: MQG)
Macquarie Group Limited (ASX: MQG) in its latest interim report reflected a solid and resilient financial performance for the half-year ended 30 September 2024 achieving a net profit of $1.612 billion this indicates a 14% uptick compared to the same timeframe a year ago. One of the high growth stocks, its performance was primarily driven by strong contributions from the company’s annuity-style businesses particularly Macquarie Asset Management which recorded a 68% Y-o-Y profit increase. The growth was attributed to higher performance fees, increased asset realisations and a strong pipeline of investment activity. Banking and Financial Services (BFS) also posted a modest 2% rise supported by robust growth in loan and deposit volumes notably within the home loan and business lending segments.
The group’s market-facing divisions including Macquarie Capital and Commodities and Global Markets experienced a decline in profitability mainly due to subdued risk management income and higher funding costs. Still, the Group upheld its careful approach to managing costs and capital. Total assets increased by 3% to $ 414.3 billion reflecting growth in loan and trading assets while total equity declined by 3% as a result of dividend payments and share buybacks. Net operating income rose by 4% to $ 8.2 billion with increased fee and commission income partially offsetting lower trading and interest income. The firm is well-capitalised, holding a CET1 ratio of 12.8% and a surplus of $9.8 billion.
The company anticipates strong growth in the private credit market supported by a recovering global M&A environment and ongoing monetary easing. With global private credit assets under management surpassing US $ 3 trillion the company is strategically positioned to capitalise on rising demand from corporates and investors. Its private credit portfolio has expanded over 50% in three years reflecting increased deal flow, tailored financing solutions and strong investor interest. It's integration with Macquarie Asset Management further enhances its capacity to attract capital and drive continued growth in this dynamic sector.
Temple and Webster Group Limited (ASX: TPW)
Temple and Webster Group Limited (ASX: TPW) delivered strong results for the first half of FY25 reporting a 24% increase in revenue to $ 314 million compared to the previous corresponding period. This growth was underpinned by both an expanding customer base active customers rose 22% to 1.2 million and higher average order values. The company also reported a 76% rise in EBITDA to $13.2 million improving its margin to 4.2%. Net profit after tax more than doubled to $9 million while free cash flow rose 61% to $32.5 million supported by an efficient asset-light business model. As of 31 December 2024, TPW held a robust cash balance of $139 million and remained debt-free. The business continues to strengthen its AI capabilities automating over 60% of customer service interactions and cutting associated costs by more than 50% since FY23. The home improvement category grew by 41% contributing $ 20 million to revenue.
The company reaffirmed its mid-term goal of surpassing $1 billion in annual revenue and reiterated FY25 EBITDA margin guidance of 1 - 3%. Market share climbed to a record 2.9% of the Australian furniture and homewares market with further gains anticipated. Strategic investments in exclusive products, technology and brand development are enhancing Temple & Webster’s competitive position as it capitalises on a broader consumer shift toward online retail. With a scalable model and strong financial base the business is well positioned for continued growth and value creation.
(Source: Company Announcements)
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