Morgans QLD Conference

About the author:

Author name:

By Andrew Tang

Job title:

Analyst - Equity Strategy

Date posted:

25 October 2016, 2:13 PM

Sectors Covered:

Equity Strategy and Quant

Morgans was pleased to host its 26th Annual Queensland Conference (12th - 14th October 2016) featuring 37 companies across several sectors of interest.

Key conference takeaways

• Domestic economic tailwinds continued to be subdued as the housing and services sectors work hard to take up the slack post the mining capex boom.
• Innovation and technology was a key focus for this year's conference. Recognising the need to digitally transform businesses and capture online customers, a large cross-section of companies outlined strategies involving technology.
• Brand Australia continues to drive strong demand for food and agriculture while attracting an increasingly affluent middle-class from Asia as a travel destination.

Strategies to address a low growth environment

With Australia navigating a period of benign growth, several corporates are looking to grow their businesses through acquisition and/or offshore expansion. 

SmartGroup (SIQ) and Motorcycle Holdings (MTO) are making successful inroads expanding via acquisition in their core markets. 

ALS Limited (ALQ), Silver Chef (SIV), Corporate Travel Management (CTD) and Catapult Group (CAT) continue to deliver on their international strategy. 

Broadly speaking, companies with offshore operations see better growth opportunities in offshore markets versus Australia.

Embracing the digital economy

Innovation and technology was a key focus for this year's conference. A large cross-section of corporates are seeking to overcome benign economic conditions by embracing the innovation offered by technology. 

Superloop (SLC), Megaport (MP1) and NEXTDC (NXT) are benefiting from the transformation in how businesses consume and store data. 

Corporate Travel Management (CTD), Suncorp (SUN) and Flight Centre (FLT) are focused on improving customer experience through technological advancement.

Redbubble (RBL) continues to win customers at double the rate of competitors on the back of platform improvements.

Brand Australia

Over the next two decades, the global middle class is expected to expand by three billion, coming almost exclusively from the emerging world including Asia and India. A travel, food and agricultural boom is in full swing as these new consumers seek out what Australia has to offer. 

Mantra Group (MTR) is currently benefiting from the double-digit growth in inbound tourism through its leisure portfolio. 

Freedom Foods (FNP) has scaled its brands and manufacturing to increase its growth to China.

2016 Key stock picks: Morgans QLD Conference

• Motorcycle Holdings (MTO) – supported by strong industry conditions in key markets and the potential for further accretive acquisition activity.
• Corporate Travel Management (CTD) – a high quality management team, technological competitive advantage and capable of delivering earnings growth in all macro conditions.
• ALS Limited (ALQ) – a high degree of front end cyclical leverage into a resource recovery and is well placed in the current cycle.
• Mantra Group (MTR) – trading well and benefiting from positive industry fundamentals. Domestic tourism demand is strong and inbound travel to Australia is growing at double digit rates.
• Catapult Group (CAT) – the world's leading system for managing the off- and on-field performance of elite athletes. As major sporting clubs try to make efficient use of their talent, the market for CAT devices will keep growing.

More information

Morgans clients can access detailed reports on all our key conference stock picks. If you would like more information, please contact your nearest Morgans office.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.