Due to declining birth rates and longer life expectancy, by 2030 it is estimated that one in five people in Australia will be aged 65 and over.
I believe this shift in population dynamics will result in a major tailwind for some Australian companies.
Three which I expect to profit greatly are listed below:
Estia Health Ltd (ASX: EHE)
I expect one of the biggest winners from Australia's ageing population will be the aged care providers. Although Estia's performance was nothing short of a disaster in 2016, things have improved greatly since then thanks partly to the much-needed shuffling of its management team. Earlier this month the company reaffirmed its outlook for mid-single digit percentage growth in EBITDA in FY 2018, subject to no material changes in market or regulatory conditions.
Lifestyle Communities Limited (ASX: LIC)
By 2030 I expect the retirement age will have risen further, which could be a positive for Lifestyle Communities. The company provides accommodation for working, semi-retired, and retired people over the age of 50 through its 15 sites in Victoria. As well as its existing portfolio providing organic growth, management intends to accelerate growth by completing at least one acquisition each year. I believe demand for its communities will grow over the next couple of decades, which could make it a good buy and hold investment option.
Zenitas Healthcare Ltd (ASX: ZNT)
Zenitas is my favourite small-cap share in the healthcare sector. Thanks to the National Healthcare Reform pushing the burden of healthcare services from hospitals into primary care, I think this home care and health services company is in a great position to profit. Especially given its plan to take advantage of the fractured market it operates in through its acquisition strategy.
