I think there are some great ASX shares that are attractive buys in September 2024.
Reporting season has just finished and I think that volatility has thrown up some interesting ideas.
With that in mind, these are two I’d be very happy to invest in:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
WHSP is an investment business that has a wide variety of assets. It’s invested in industries like telecommunications, resources, financial services, electrification, agriculture, credit, ’emerging’ companies, healthcare and more.
One of the most attractive attributes of this business is that it’s steadily adding to its investment portfolio over time. It’s adding more snow to an already-rolling snowball.
The ASX share has invested significantly in its credit portfolio in the last couple of years, which has delivered solid returns in this higher rate environment.
The WHSP portfolio, in my eyes, is constructed defensively and can be resilient during times of market volatility, leading to potential outperformance of the market.
With a dividend that has grown every year since 2000, it’s a solid ASX dividend share too in my opinion.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a fast fashion jewellery retailer. The Lovisa share price is down 17% from 23 August 2024.
For a retailer, the business is priced for a lot of growth. The company’s FY24 result was another good year, in my opinion, with revenue growth of 17.1% to $698.7 million, net profit after tax (NPAT) growth of 20.9% to $82.4 million and operating cashflow rose 27.6% to $240.4 million.
FY24 comparable store sales declined 2%, but in the first eight weeks of FY25 the company reported comparable store sales growth of 2%. I think that’s a very positive sign and looks promising for future store growth. I want to see a retailer’s existing stores continue to perform well.
The business has entered a number of new markets in the last year or so including China, Vietnam, Ireland, Ivory Coast and Republic of Congo. It’s rapidly adding new stores – in FY24 it added 99 new stores to reach a total of 900.
I think it is easily possible for the business to add another 1,000 Lovisa stores over the next decade and this increased scale could deliver compelling operating leverage, helping profit rise quicker than revenue.
Lovisa also has a growing dividend, which can help boost cash returns during this growth journey.
I think it’s a good time to invest in this ASX share at a lower price.
