I believe that there are some attractively ASX shares that have great long-term growth potential.
A combination of COVID, company-specific issues and worries about rising interest rates have seemingly caused plenty of the ASX leading shares to fall in value.
In my opinion, businesses that utilise a high level of technology give themselves an exciting opportunity of producing investment outperformance.
That’s why I like the look of these two:
Airtasker Ltd (ASX: ART)
Airtasker is a tech company think links up people who want a task doing with people willing to do the task.
It’s experiencing good traction in Australia and now it’s trying to establish and scale new Airtasker marketplaces across the world to replicate that success, starting in the UK and USA.
After the lockdowns, Airtasker saw gross marketplace volume (GMV) reach $3.9 million per share, equating to $200 million on an annualised basis.
It generated 38% growth of FY21 revenue to $26.6 million, with a gross profit margin of more than 93%. High margins bodes well for future profitability as it gets bigger. FY21 also saw positive operating cashflow of $5.5 million, which shows strong underlying cashflow and allows its to invest heavily for growth which will help the business (such as marketing).
The Airtasker share price has fallen by 34% since October 2021. I think today’s price represents a great opportunity for investors to buy shares of the business.
If the ASX share can keep growing GMV and increase the amount of returning customers then it has a good future.
EML Payments Ltd (ASX: EML)
EML Payments is a key enabler of the payments industry with things like gift cards, online gift cards and gaming payouts.
The ASX share looks very good value to me. The EML share price has fallen around 40% since the announcement of the Central Bank of Ireland (CBI) news where the regulator essentially said it was concerned about EML’s rapid growth in Europe and that it wanted to ensure anti-money laundering and counter-terrorism financing laws were being followed.
However, the results of that investigation seem much better expected, but the EML share price isn’t really reflecting that. It can still sign new customers and launch new programs, whilst staying within the material growth restrictions.
The Irish business in question is only part of EML’s business. Total revenue and underlying net profit continues to grow quickly. I think that EML can continue expanding with existing customers as well as winning new customers for many years into the future.
CommSec numbers put the EML Payments share price at just 19x FY24’s projected profit. Looking further out, I think the business can produce good returns over the long-term because of the profit potential in the years ahead.
