Fund Manager Summary
The fund managers believe that the outlook for Beacon Lighting Group Ltd presents opportunities for growth, particularly in light of the recent 18% YoY growth in the trade business despite a challenging housing market. In their opinion, while the company's performance has been solid but unspectacular, the 3.7% total revenue growth indicates resilience. They note that management has highlighted growing momentum in retail sales following recent rate cuts and improved consumer sentiment. Furthermore, the recovery signs in Victoria, which constitutes 30% of retail sales, are viewed positively. However, the lack of near-term catalysts may limit performance compared to the broader small-cap index.
Source: Trading View
Commentary From The Managers
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Perpetual Asset Management
31 Oct 2025
$2.79
Summary
- Beacon Lighting detracted from portfolio performance in October with a stock decline of 13.9% following its Annual General Meeting.
- Sales growth has accelerated through FY25, but trading momentum softened leading into FY26, with emerging weaknesses noted in late August and September.
- The company announced a store closure in Springvale (VIC), raising concerns about near-term earnings growth and dampening investor confidence.
- Despite challenges, Beacon Lighting reiterated guidance for two new store openings in FY26, including Auburn (NSW) and Altona (VIC).
- Successful plans to expand into international markets with Australian-designed fan and lighting products have been launched.
- Management’s disciplined cost control approach and transformation initiatives position BLX as a key market leader in retail lighting and fan distribution.
- Looking ahead, improved consumer confidence and potential housing activity recovery could enhance the company’s capacity to benefit from market improvements.
- Perpetual Asset Management continues to hold due to the long-term expansion strategy and market positioning of Beacon Lighting.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Perpetual Asset Management
31 Oct 2025
$2.79
- Beacon Lighting detracted from portfolio performance in October with a stock decline of 13.9% following its Annual General Meeting.
- Sales growth has accelerated through FY25, but trading momentum softened leading into FY26, with emerging weaknesses noted in late August and September.
- The company announced a store closure in Springvale (VIC), raising concerns about near-term earnings growth and dampening investor confidence.
- Despite challenges, Beacon Lighting reiterated guidance for two new store openings in FY26, including Auburn (NSW) and Altona (VIC).
- Successful plans to expand into international markets with Australian-designed fan and lighting products have been launched.
- Management’s disciplined cost control approach and transformation initiatives position BLX as a key market leader in retail lighting and fan distribution.
- Looking ahead, improved consumer confidence and potential housing activity recovery could enhance the company’s capacity to benefit from market improvements.
- Perpetual Asset Management continues to hold due to the long-term expansion strategy and market positioning of Beacon Lighting.
Summary
Infinity Asset Management
30 Sept 2025
$3.24
- Infinity Asset Management sold their investment in Beacon Lighting (BLX) due to strong share price appreciation.
- The stock is now well above their valuation.
- They believe the company will not be able to grow its earnings sufficiently in the next few years.
- The current price/earnings multiple is not justified by expected earnings growth.
- As a result, the decision was made to exit this position.
Summary
Firetrail Investments
31 Aug 2025
$3.50
- Beacon Lighting has underperformed compared to the Small Ords, with shares remaining flat to slightly lower as results week approaches.
- Trade strategy execution has been effective, resulting in approximately 18% YoY growth in the trade business, contributing to total revenue growth of around 3.7%.
- The performance has been capped by solid but unspectacular results and a lack of near-term catalysts.
- Management has noted growing momentum in retail sales, driven by recent rate cuts, improved consumer sentiment, and early signs of increased housing turnover.
- Victoria, accounting for an estimated 30% of Beacon’s retail sales, is showing signs of recovery after a prolonged period of subdued house price performance.
- Firetrail Investments continues to hold due to the ongoing execution of Beacon’s strategy and potential for recovery in key markets.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"In a seemingly stagnant market, there’s a flicker of hope for Beacon Lighting as trade growth shines amid broader challenges. With retail sales gaining traction post-rate cuts, the future may hold brighter days for this lighting retailer, if momentum continues to build."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Beacon Lighting Group Ltd (ASX:BLX)?
Fund managers including Firetrail Investments and Perpetual Asset Management have invested in Beacon Lighting Group Ltd (ASX:BLX).
Why do fund managers invest in Beacon Lighting Group Ltd?
Fund managers are investing in Beacon Lighting Group Ltd due to its strong execution of trade strategies, resulting in approximately 18% year-over-year growth in the trade business, which contributes to overall revenue growth of 3.7% despite a challenging housing market. The management's positive outlook on retail sales, bolstered by recent rate cuts and improved consumer sentiment, alongside early signs of recovery in Victoria's housing market, supports their investment thesis. However, the lack of near-term catalysts and the company's underperformance relative to the small-cap index are noted concerns.
What happened to Beacon Lighting Group Ltd (ASX:BLX)?
Fund managers have invested in Beacon Lighting Group Ltd due to its solid execution of trade strategies, achieving approximately 18% year-on-year growth in its trade business despite a weak housing market. While recent performance has shown volatility, management's focus on disciplined cost control and expansion into international markets positions the company as a leader in lighting and fan distribution. With signs of recovery in retail sales and potential improvements in consumer sentiment and housing activity, Beacon Lighting is well-placed to capitalize on future market opportunities.