An exciting thing about the ASX share market is that there are opportunities everywhere.
There are some large winners that are well-known and grow profit virtually every year. But, small companies and cyclical businesses can also be exciting ideas if we buy them at the right time.
Experts from the funds management business Wilson Asset Management (WAM) have outlined two ASX shares in the WAM Capital Ltd (ASX: WAM) portfolio that could be exciting opportunities.
WAM could be well worth listening to because it has outperformed the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA) over the past three years, five years, ten years, and since inception in August 1999. Before fees, expenses and taxes, the WAM Capital portfolio has returned an average of 15.3% per year since 1999.
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Maas Group Holdings Ltd (ASX: MGH)
WAM describes Maas Group as a diversified Australian construction materials, equipment and services provider with exposure across civil infrastructure, renewables, mining and real estate markets.
The fund manager pointed out that the Maas share price rose in December after the company announced a major project worth approximately $200 million for its electrical infrastructure subsidiary called JLE Group.
This project aims to supply, deliver and install modular electrical infrastructure for an artificial intelligence (AI) factory builder and operator with the delivery expected throughout the 2026 calendar year.
Excitingly, the project has enabled the ASX share to expand its addressable market into the fast-growing digital infrastructure market. WAM said that if the initial contract value awarded is extrapolated across the remaining pipeline, it "implies a substantial runway exists with JLE Group".
Tasmea Ltd (ASX: TEA)
The other ASX share that the fund manager highlighted from the WAM Capital portfolio was Tasmea, which operates a portfolio of trade-skilled services businesses, including electrical, mechanical, civil and water (and fluids) services.
In December, the company announced that it had completed the acquisition of WorkPac Group, a leading provider of workforce solutions in Australia.
WAM noted the deal adds to the ASX share's earnings in the high single digits, with a number of long-term benefits including revenue and cost synergies that will "support multi-year earnings growth".
Despite that positive, the Tasmea share price fell alongside the broader market – the ASX share declined 12%. WAM believes this drop was because of some concerns that this acquisition was "off strategy".
The fund manager thinks that the market is underestimating emerging pressures within the east coast labour market, with the WorkPac Group acquisition "positioning the company strongly to capitalise on an expected surge in activity associated with the Brisbane Olympics. WAM also said that the broader commodity price backdrop remains "supportive for demand" within its core verticals.
