There are some quality ASX shares that may be worth thinking about this weekend.
They are businesses that are producing earnings growth and have reached a strong market share.
These two ideas below may be attractive long-term opportunities if they can keep growing over time:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
This is an exchange-traded fund (ETF) that is about giving investors exposure to 50 of the biggest technology businesses in Asia outside of Japan.
The West has plenty of big technology names like Microsoft, Apple and Amazon. But there are also some giants in Asia (excluding Japan).
Looking at the biggest 10 positions in the portfolio at the last update, they were: Taiwan Semiconductor Manufacturing, Samsung Electronics, Alibaba, Tencent, Sea, Infosys, Meituan, JD.com, Pinduoduo and Naver.
Some of these are the biggest e-commerce retailers and the biggest global gaming businesses. Samsung is one of the biggest smartphone, TV and appliance makers. These are businesses with big market shares.
It has annual management fees of 0.67%. That’s higher than quite a few index-based ETFs but lower than many active managers who charge 1% per annum, or more.
BetaShares Asia Technology Tigers ETF has been falling in recent months. At 31 July 2021 it had fallen 11.3% over the month. It has fallen another 6% since then.
Sometimes a drop in prices can be an opportunity to think about.
Despite that decline, since September 2018 the ASX share has seen an average net return per annum of 23%. But past performance is no guarantee of future performance.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara provides software, its clinical functions for breast screening clinics provide feedback on breast density, compression, dose and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement, and patient tracking.
The ASX share has the Volpara breast health platform, its AI software platform, which is a suite of software solutions that collects and analyses information to better understand a patient’s breast cancer risk, while evaluating image quality and workflow improvement opportunities.
These capabilities are being extended to lung cancer screening.
The company has managed to increase its coverage of US women being screened to 33% in the three months to 30 June 2021. That was an improvement from 32% in the previous quarter.
Volpara’s annual recurring revenue (ARR) is now around US$19.2 million and client churn is low. In the latest quarter, its average revenue per user (ARPU) was US$1.42. But some sites were seeing ARPU was US$5.87.
The sale of multiple products to new clients is increasing ARPU. Upselling to existing clients is another opportunity for the ASX share to grow ARPU. Volpara continues to look for acquisition opportunities that can improve its offering or grow ARPU.
Its FY22 focus is risk and genetics. Volpara says that it wants to ensure that all women get extremely accurate risk assessment, go onto the right pathways and are monitored with world-class detection.