2 mid cap ASX shares growing strongly

Have you looked at your options in the mid cap space?

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If you are interested in investing in some promising mid cap shares, then you may want to take a look at the two listed below.

Both are growing at a strong rate and have a lot of potential. Here’s what you need to know about these ASX shares:

Collins Foods Ltd (ASX: CKF)

Collins Foods is a leading quick service restaurant operator with a focus on KFC restaurants.

At present, the company operates 251 KFC restaurants throughout Australia. These are predominantly in the Queensland market, with 158 restaurants in the state. Collins Foods also has a growing European footprint, with 17 KFC restaurants in Germany and 28 in the Netherlands, and 16 Taco Bell restaurants throughout Australia.

It has been a positive performer during the pandemic. During the first half of FY 2021, Collins Foods reported an 11.3% increase in revenue to $499.6 million. And thanks to margin expansion, the company’s underlying net profit after tax came in 15.1% higher at $27.5 million.

Pleasingly, Collins Foods appears well-placed for growth in the future thanks to its store expansion opportunities. This is particularly the case for its KFC restaurants in the underpenetrated European market. It also has the option of adding to its portfolio of brands through acquisitions, developments, or agreements. 

Hipages Group Holdings Ltd (ASX: HPG)

Another mid cap ASX share to take a look at is Hipages. It is a leading Australia-based online platform and software as a service (SaaS) provider.

Hipages’ focus is on connecting tradies with residential and commercial consumers. At the last count, over three million Australians had used its popular platform. This provided work to over 34,000 tradie businesses that are subscribed to the platform.

But there’s more to the company than that. It also provides businesses with its Call of Service job management software. This has been designed to improve tradies’ productivity by streamlining their workflow and taking away the stress of admin.

At present the company is capturing approximately 5% of total industry advertising spend, but has been tipped to grow its market share materially in the future. For example, a recent note out of Goldman Sachs reveals that its analysts see scope for Hipages to capture upwards of 40% to 60% in the future as its builds out its ecosystem. 

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James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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