There is an ASX share that's more than doubled its price this year, but some experts reckon it's perfectly positioned to grow even further in the post-COVID world.
Wilson Asset Management portfolio managers Matthew Haupt, Catriona Burns and Oscar Oberg said in a memo to clients that 2 of their funds currently held Maas Group Holdings Ltd (ASX: MGH) shares.
"The Australian Securities Exchange (ASX) has a rich history of founder-led companies delivering stand-out returns for investors," they wrote.
"MAAS Group is one such company that demonstrates the key attributes of a successful founder-led company which we believe has a significant runway for value creation over the medium term."
After floating on the ASX in December, MAAS shares started the year at $2.65. That's risen more than 103%, to trade at $5.43 on Friday morning.
What is MAAS Group?
Former South Sydney NRL player Wes Maas had no vocational qualifications when his rugby league career ended prematurely due to a serious injury in 2002.
So he spent his entire savings to buy a bobcat, which he hired out to construction businesses.
The rest is history.
"The group has expanded significantly since, culminating in the successful initial public offering [IPO] of the business in December 2020 at $2 per share at an implied valuation of over $600 million," said the Wilson portfolio managers.
"Wes retained 69% of the shares in the company while employees were also granted significant equity."
Haupt, Burns and Oberg love that management and staff own so much of the business.
"'Skin in the game' ensures strong alignment with shareholders, whilst underpinning the entrepreneurial spirit of the organisation."
Far from just a single bobcat for hire, the mammoth business now provides "vertically integrated" construction materials and equipment services, as well as undertaking property development.
How can MAAS shares grow further?
Despite the significant upwards run in stock price, the Wilson fund managers reckon MAAS plays in segments that are set to take off after this COVID-19 Delta strain is put behind us.
"With strategically located quarry assets, significant latent capacity and a substantial pipeline of infrastructure spend expected over the coming 3 to 5 years, we believe the organic growth outlook for the business is compelling."
There is further potential with acquisitions on top of organic growth.
"This week, MAAS Group announced it had signed an agreement for the acquisition of Earth Commodities hard rock quarry operations in central Queensland, enabling the company to realise synergies within its central Queensland construction materials business and enhance its growth opportunities in the year ahead."
The potential of the property development arm, the Wilson experts think, is not well understood by investors.
"The property development business remains an underappreciated aspect of MAAS Group, providing exposure to high growth corridors across both residential and commercial real estate," they wrote.
"And we see potential for separate listed vehicles in the future."
