I think that the mid cap side of the Australian share market has a large number of high-quality shares which could be great investments over the long term.
Three that jump out as quality buy and hold options at present are listed below. Here's why I think they are worth a closer look:
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a fast-growing provider of software solutions for the wealth management, life insurance, and funds administration industries. Last month it posted a 27% increase in underlying net profit after tax to $27 million thanks to the growing popularity of its Sonata wealth management platform. During the 12 months Sonata revenue increased 32% to $122.5 million, meaning its now accounts for 55% of total revenue. Due to the quality of the product, I believe Sonata will continue to win a greater share of the market and propel Bravura Solutions' growth for some time to come.
Collins Foods Ltd (ASX: CKF)
Collins Foods is a KFC franchisor with a total of 256 stores across Australia and Europe. Although its growth in Australia may be limited in the future due to the maturity of the market, I believe the underpenetrated European market will provide it with significant growth potential and could make it a great buy and hold option. Another bonus for patient investors is that Collins Foods pays a reasonably generous dividend which I feel could grow meaningfully along with earnings in the future.
Helloworld Travel Ltd (ASX: HLO)
Helloworld is an integrated travel company which was an impressive performer during earnings season. In FY 2018 the company posted a 3.5% increase in total transaction value to $6.1 billion and an impressive 48.1% increase in profit after tax to $32 million. The strong form is expected to continue in FY 2019 with management providing earnings growth guidance in the range of 16.5% and 23%. I believe this makes Helloworld's shares great value at just 19x full year earnings.
