Australian Agricultural Company Ltd, Star Entertainment Group & Treasury Wine Estates could benefit from China boom

Credit: Penfolds

A recent piece of research by CommSec has put into perspective just how persuasive the thematic of China-led growth could be for Australia’s future prosperity.

In a pair of charts under the heading of ‘China: Consumers to lead’, CommSec has charted the huge rise in what it terms the “dining boom”. One chart shows how food exports to China have risen from under $1 billion to over $5 billion in the past decade.

Another chart shows the astronomical rise in tourists from China and Hong Kong to Australia over the past seven years, where numbers have risen from around 500,000 to nearly 1.4 million per annum.

The positive trends which can be seen from these two charts certainly paint an encouraging picture as to how the Australian tourism, food, and beverage sectors could be long-term beneficiaries of the China growth thematic.

Three companies that all appear well placed to benefit from this theme, in my opinion, are Australian Agricultural Company Ltd (ASX: AAC), Star Entertainment Group Ltd (ASX: SGR) and Treasury Wine Estates Ltd (ASX: TWE).

AAco is Australia’s leading producer of beef and recently improved its business model with the building of a processing facility in Darwin. This facility provides for an improved vertically integrated offering and a strategically positioned asset close to Asia.

Star Group operates casino venues in both Sydney and Brisbane. While its Sydney operations will soon have to compete with a Crown Resorts Ltd (ASX:CWN) owned casino, Star remains well positioned in both markets to capture a significant share of the Asian tourist dollar.

Treasury Wine Estates is Australia’s largest wine brand owner which is not only enjoying increased demand for its exports into Asia, but it also stands to capture the inbound tourist dollar via its extensive cellar door operations throughout Australia’s wine regions.

How 1 Man Turned $10K Into Over $8 Million

Discover how one man turned a modest $10,600 investment into an $8,016,867 fortune. Learn more about this man and how you can start down the path toward financial independence. Simply click here to learn more.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.