- Mid-cap stocks provide a balance between growth and stability for an investor’s portfolio.
- Worley Limited secured two deals in the first week of May 2021.
- Abacus Property signed deals on four additional Self Storage facilities. The Company bought and finalized the purchase of rest of the 60% interest in The Oasis Centre.
- Steadfast Group reported impressive 9-month financials with notable growth in revenue and EBITDA.
- Incitec Pivot signed an off-take deal with Fertilisers Pty Ltd. and Perdaman Chemicals for a period of 20 years.
Mid-cap stocks are popular amongst market participants looking for a balance of growth and stability in their portfolio. Mid-cap stocks have a market cap between AU$2 billion to AU$10 billion and can grow further in terms of profit and market share.
Mid-cap stocks strike the right balance between growth and stability (Source: © Richelle538 | Megapixl.com )
In this article, we have filtered a couple of ASX-listed mid-cap stocks that started well in May 2021. They include Worley Limited, IGO Limited, Abacus Property Group, Steadfast Group Limited, and Incitec Pivot Limited.
Worley Limited (ASX:WOR)
Worley Limited, the provider of professional services to support its clients meet the world's changing energy, chemicals and resources needs, announced two updates related to its recent agreements in the first week of May 2021.
- CITGO Refining and Chemicals Company L.P awarded Worley a maintenance, turnaround, and services agreement under which the Company would provide maintenance, turnaround and sustaining capital services to the two refineries in Corpus Christi, Texas and Lake Charles, Louisiana. In this project, 600 people would be providing services. The agreement is for five years.
- Liquid Wind AB gave Worley a front-end engineering design services and cost estimate agreement for its renewable methanol facility FlagshipONE in Örnsköldsvik, Northern Sweden. The services would be executed by the Company's Sweden and UK offices. Support would be from the Global Integrated Delivery team in India.
IGO Limited (ASX:IGO)
In the March 2021 quarter, IGO Limited updated its divestment plan of 30% interest in Tropicana to Regis Resources (ASX:RRL) for AU$903 million. Tropicana has been an essential component of IGO's past and a major driver of its continued growth.
Source: © Stevanovicigor | Megapixl.com
On 6 May 2021, the Minister for Mines and Petroleum provided consent to transferring certain tenements from IGO Limited to Regis. The approval means that the planned acquisition of 30% interest in Tropicana from the Company is free from the condition’s precedent. Now, the condition is no more conditional.
The proceeds from the divestment would be used to fund IGO's investment in Lithium Transaction with Tianqi.
Abacus Property Group (ASX:ABP)
Abacus Property Group, the leading diversified property group, signed deals on four more Self Storage facilities. It acquired and completed the purchase of the remaining 60% interest in The Oasis Centre, Broadbeach QLD, from an affiliate of KKR Oasis Pty Ltd. The acquisition would be funded through debt and the proceeds from the entitlement offer. Total consideration in the process was AU$103.5 million. It excludes transaction cost.
The Company's agreement to acquire 60% interest in The Oasis Centre represents its strategy to expand its portfolio of Self Storage locations with 4 Self Storage facilities acquired for AU$44.2 million. The acquisition excludes the transaction cost. The settlement would happen in May 2021.
Steadfast Group Limited (ASX:SDF)
Steadfast Group Limited released its Macquarie Conference 2021 presentation where it discussed its strategic initiatives, YTD March 2021 COVID-19 Impact and the industry update. Steadfast Group provides insurance broking and underwriting services.
The Company reported a strong trading update for nine months ended 31 March 2021. It witnessed 7.2% growth in its Underlying Revenue to AU$641.1 million and Underlying EBITA to 20.5% to AU$178.2 million. The performance during this period remained strong and was driven by organic growth.
Upgraded FY2021 Guidance
Incitec Pivot Limited (ASX:IPL)
Incitec Pivot Limited, the manufacturer and distributor of industrial explosives, industrial chemicals, and fertilisers, announced that its subsidiary Incitec Fertilizers Pty Ltd signed an off-take deal with Fertilisers Pty Ltd. and Perdaman Chemicals for a period of 20 years.
Under this deal, Incitec Fertilizers would commit to taking equal to 2.3 million tonnes yearly of granular urea fertiliser from the planned urea plant of Perdaman at Karratha in Western Australia.
The Offtake Agreement offers IPF the chance to obtain a competitive long-term domestic supply of urea for its consumers in Australia and grow sales into rising global markets.