The leading investors from Wilson Asset Management (WAM) have shared two compelling S&P/ASX 300 Index (ASX: XKO) shares on their radar.
WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.
Meanwhile, WAM Capital Limited (ASX: WAM) targets "the most compelling undervalued growth opportunities in the Australian market".
But does WAM have a claim of stock-picking pedigree? The WAM Capital portfolio has delivered an investment return of 14.8% per annum since its inception in August 1999. That's before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.2% per annum over the same timeframe.
With that in mind, here are the two ASX 300 shares WAM Capital has outlined in its recent monthly update.
Maas Group Holdings Ltd (ASX: MGH)
WAM describes Maas as a leading independent Australian construction materials, equipment, and services provider focused on the civil, infrastructure, and mining end markets.
The fund manager pointed out that last month, the company announced an on-market share buyback of up to 10% of Maas Group Holdings' shares on issues within the next 12 months. Management is trying to increase shareholders' return on equity (ROE).
WAM pointed out that last month the company announced its acquisition of Victorian integrated construction materials business Dandy Premix was completed for $85 million.
This acquisition will "establish a significant presence in the construction materials market in Victoria, which has a good growth outlook underpinned by continuing strong construction and infrastructure spend".
The fund manager concluded its thoughts on the ASX 300 share:
We remain positive on the future outlook of Maas Group Holdings and look forward to the progress in its acquisition of the commercial development site in Newcastle, New South Wales.
Johns Lyng Group Ltd (ASX: JLG)
This ASX 300 business is an integrated building services group delivering building and restoration services across Australia and the US.
Last month, WAM noted Johns Lyng gave a business update, announcing its executive director and group chief operating officer Lindsay Barber sold four million shares, representing around 31% of his shareholding of the business.
WAM noted the Johns Lyng share price fell after that announcement but the fund manager remains "confident in Mr Barber's commitment to his role as well as in the company's ability to maintain its earnings guidance for FY23".
Johns Lyng said that it expects FY23's sales revenue to grow by 15.2% to $1.03 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to grow by 26% to $105.3 million in FY22.
