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2 ASX shares enjoying increased demand due to coronavirus

There has been a lot of coverage in the press about sectors that have been heavily impact by the coronavirus outbreak, including the travel and tourism sector and the leisure industries, with significant falls seen in company share prices in those segments. Webjet Limited (ASX: WEB), Flight Centre Travel Group Ltd (ASX: FLT), and Qantas Airways Limited (ASX: QAN) in particular have been harshly impacted due to tightening travel restrictions.

However, some segments of our economy, including parts of the healthcare and food industries, have actually benefitted from the growing demand for certain types of healthcare products and food items.

Here we look at 2 companies that have seen an increase in demand for their products following the coronavirus outbreak: Bubs Australia Ltd (ASX: BUB) and Fisher & Paykel Healthcare Corp Ltd (ASX: FPH).

Bubs

The Bubs share price has risen by 10% so far today, following an update that it has seen a strong demand for its products due to the coronavirus outbreak. Bubs produces Australian-made infant formula, organic baby food and cereals, including goat milk products.

Bubs, A2 Milk Company Ltd (ASX: A2M)’s rival, has been experiencing strong demand from parents buying up its infant milk formula product in case supplies are difficult to get over the coming weeks and possibly months. This type of buying behaviour is very similar to what we have seen with regards to the sale of toilet paper and other hygiene products such as hand sanitisers in supermarket chains such as Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL).

Fisher & Paykel

Fisher & Paykel Healthcare specialises in the treatment of respiratory illnesses including sleep apnoea. In late February, the company reported that it had experienced higher than expected sales within its Hospital product business after an increase in demand from China following the coronavirus outbreak. This was part of the reason why it upgraded its earnings and revenue guidance for the full year at that time.

This demand is likely to continue over the next few weeks and months, given most governments globally now agree that this outbreak is unlikely to end any time soon.

Additionally, the company recently announced the launch of a new nasal mask for the treatment of obstructive sleep apnoea (OSA).

The Fisher & Paykel share price is currently up 3.04%, in contrast to the broader market which has continued to drop today.

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Motley Fool contributor Phil Harpur owns shares of A2 Milk and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO and Webjet Ltd. 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 Scott Phillips.