The August profit reporting season was a bit of a mixed bag for investors, with mining stocks running hot, while other investor favourites failed to impress.
Amongst the industrials sector traditionally favoured by growth-oriented investors there were several standout performers, some of which may still be worth buying. In investing and business the winners often keep on winning, so let's take a look at some businesses that had a great first half to 2017.
Reliance Worldwide Corporation Aus (ASX: RWC) is the plumbing business that reported a net profit of $65.6 million on sales of $601.7 million for the full year ending June 30, 2017. The profit was 26% above the prior year and shares now change hands for $3.63 on 29x trailing earnings. However, the group's chairman is reportedly looking to sell $368 million worth of shares at $3.50 and for that reason I'm watching this business from the sidelines.
Ainsworth Gaming Technologies Ltd (ASX: AGI) is the gaming-machine manufacturer that posted an especially strong six-months ending June 30, 2017 that showed some accelerating growth. As such the group decided to withhold a dividend in order to reinvest for growth, especially in overseas markets where demand is high for gaming machines. At $2.58 the shares have just pulled back from a record high of $2.72.
Reece Ltd (ASX: REH) is another plumbing business proving that often it's not the sexy tech shares that offer the best returns. In FY 2017 Reece lifted its net profit 10.2% to $211.8 million, with full year dividends totalling $1. The stock is on a trailing yield of 2.3% and has climbed 134% over the past five years.
a2 Milk Company Ltd (Australia) (ASX: A2M) beat its own sales forecasts thanks to strong demand for its a2-only-protein infant formula and supermarket milk products. The group is now facing rising competition, but could be on a long-term growth trajectory. Shares look expensive at $5.05 today.
