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Wednesday 28 October 2026 123 comments
EYE Nova Eye Medical Held XRO Xero Held Yarra Capital Management holds an overweight position in Xero (ASX: XRO), the cloud accounting software company, which underperformed during the quarter as it tracked weakness in global peer Intuit. Yarra notes that Xero's fundamental drivers are quite different from Intuit's. Sentiment has been weighed down by Xero's lack of tangible progress in rolling out and monetising AI products compared with peers. However, Yarra sees this as consistent with other businesses serving small and medium-sized enterprises (SMEs), where AI adoption is expected to lag that of large enterprise customers. BAP Bapcor Held Yarra Capital Management holds an overweight position in Bapcor (ASX: BAP), the automotive aftermarket supplier, which outperformed after a better-than-expected FY26 result. Yarra notes that Bapcor reduced its debt to 1.7 times net debt to EBITDA. It also reported stronger operating momentum in its Trade segment, where it has stabilised market share in a difficult environment. The manager remains somewhat cautious on the short-term outlook because the business is still in turnaround. However, Yarra believes value can be unlocked if Bapcor delivers on its strategic initiatives. NEC Nine Entertainment Co Held Yarra Capital Management holds an overweight position in Nine Entertainment (ASX: NEC), Australia's largest media company, which underperformed after its August result showed weakness in its advertising-exposed businesses, particularly television and out-of-home. Yarra notes the advertising market remains soft, pressured by a restrictive cash rate and weak consumer confidence. The manager is cautious in the near term but constructive over the medium term. It expects portfolio simplification to shift Nine's business mix toward growth assets such as Outdoor, Stan and Publishing. On an FY27 basis, Yarra notes Nine trades on a 10.1% dividend yield and a 4.4% free cash flow yield. WDS Woodside Energy Held Yarra Capital Management holds an overweight position in Woodside Energy (ASX: WDS), which outperformed as oil and gas prices rose sharply on renewed hostilities around the Strait of Hormuz. During the quarter, Brent crude rose 41%, while global gas benchmarks JKM and TTF rose 61% and 62% respectively. Yarra notes that around 20% of global oil products and 22% of LNG have historically passed through the Strait. The manager remains attracted to Woodside's organic growth pipeline, led by the Scarborough project. Scarborough remains on budget and on schedule and is expected to lift production by more than 30% over the next two years. WES Wesfarmers Held Yarra Capital Management holds an underweight position in Wesfarmers (ASX: WES), which underperformed after reporting an in-line result. Yarra believes the company's core retail businesses, Bunnings and Kmart, remain exposed to a tightening consumer environment, with heavy exposure to housing turnover and interest rates. The manager notes that Wesfarmers still trades on a premium FY27 price-to-earnings multiple of 28.0 times, compared with a 10-year average of 23.4 times, and offers a modest 3.1% dividend yield. In Yarra's view, this leaves market expectations relatively high for the stock. NXT Nextdc Held Yarra Capital Management holds an overweight position in NextDC (ASX: NXT), Australia's leading data centre owner and developer, despite the stock detracting from performance during the quarter. Yarra notes the market remained cautious about the scale of new data centre announcements in Australia and about NextDC's ability to fund its next phase of growth. Despite these concerns, NextDC remains Yarra's preferred listed data centre investment, supported by its strong track record of delivering projects and generating returns on capital. WEC White Energy Company Increased Emerald Capital increased its exposure to White Energy Company (ASX: WEC) by participating in the company's placement at 6 cents, part of a 250 million share raising completed in September 2026. White Energy was one of the fund's largest contributors for the month, with the stock ending September at 29 cents. Emerald attributes the rerating to the company's repositioning under Executive Chair Nathan Tinkler. This includes proposed acquisitions of energy assets in Australia and the United States, backed by fresh capital. HCW Healthco Healthcare and Wellness Reit Held Emerald Capital continues to hold HealthCo Healthcare and Wellness REIT (ASX: HCW), which owns a portfolio of hospitals and healthcare properties. Emerald notes the June 2026 NTA was $1.35 per unit, while units traded around $0.74, a discount of more than 40%. The portfolio was independently valued at $1.35 billion, and management estimates the replacement value of the hospitals alone at well above $2 billion. The manager believes the main overhang, the Healthscope situation, has been resolved. Healthscope rent was paid in full, replacement leases were agreed with experienced hospital operators at unchanged rents, and independent valuations show no material change to NTA. HealthCo has guided to a 6.0 cent distribution for FY27, a yield of more than 8%. MOT Metrics Income Opportunities Trust Held Emerald Capital continues to hold Metrics Income Opportunities Trust (ASX: MOT), despite a setback after KPMG declined to sign off the FY26 accounts for the three listed Metrics trusts. The trusts were halted, and the audited accounts eventually released in October carried lower valuations, cutting MOT's NTA from $2.15 to $1.93. Emerald's thesis had been that a market price of $1.68 offered an adequate buffer to the $2.15 book value. The manager reminds investors that its time horizon for MOT is two years. Emerald notes sentiment toward private credit is extremely weak, following successive interest rate rises and the collapse of the Bathla Group. MOT now trades at $1.48, a 23% discount to its revised NTA. EQT EQT Held Emerald Capital continues to hold EQT Holdings (ASX: EQT), having seen an opportunity when the shares fell on concerns about the group's exposure to the First Guardian Master Fund collapse. Emerald believed the sell-off overstated the likely financial impact relative to the earnings base of a long-established trustee and wealth business. The manager notes the stock became cheap enough to attract corporate interest. TPG Global made an indicative offer of $24.55 per share on 17 August 2026, and BGH Capital followed at $24.75 on 21 August. EQT closed September at $21.00. In October, TPG reportedly acquired a 14.9% stake at around $23.50 per share, becoming a substantial holder as the contest for control continues. BNZ Benz Mining Corp Held Emerald Capital continues to hold Benz Mining (ASX: BNZ), the fund's largest listed position, which it sees as one of Australia's largest advanced explorers of a tier 1 gold system. Benz is drilling its 100%-owned Glenburgh project in Western Australia. In June it published an Exploration Target of 10.1 to 12.0 million ounces, about 80% drill-defined, all within a granted and permitted mining lease. Drilling continues to deliver wide, high-grade intercepts, including 41 metres at 14.5 g/t gold at Icon. Benz raised $150 million in August at $3.71 and targets a maiden resource in early 2027. October results defined a mineralised system 100 to 200 metres wide across the first kilometre of the 3-kilometre Icon trend. Emerald believes large gold systems like this are rare and will eventually be acquired by major miners. WTM Waratah Minerals Held Emerald Capital continues to hold Waratah Minerals (ASX: WTM), which is drilling its Spur project in the East Lachlan region of New South Wales, the same belt that hosts Cadia. Emerald notes Waratah reported its best intercept to date in September 2026: 46 metres at 7.27 g/t gold, including 19 metres at 15.62 g/t. It also extended the mineralised corridor to around 6 kilometres. Waratah raised $48 million in May and is targeting a maiden resource in early 2027. October drilling extended the Consols zone on several margins. Emerald also notes increased broker coverage of the stock in recent weeks. EUR European Lithium Increased Emerald Capital increased its position in European Lithium (ASX: EUR), buying both shares and listed options as the company's merger into Nasdaq-listed Critical Metals Corp (CRML) progressed. Emerald notes the terms were amended in August from a fixed exchange ratio to a range of 0.025 to 0.045 CRML shares per EUR share, with the ratio likely to settle at 0.045. Based on CRML's 16 October price, this implies about $0.45 per EUR share, subject to change before completion. The shareholder vote is on 22 October, with implementation targeted for early November. European Lithium holders are expected to own about 41% of the combined group, which will hold 100% of the Tanbreez rare earth project in Greenland and the Wolfsberg lithium project in Austria. QAL Qualitas Initiated Emerald Capital initiated a position in Qualitas (ASX: QAL) after recognising that competition in non-bank lending has almost disappeared. Emerald believes lenders that survive the current downturn will be well placed to thrive. The manager notes Qualitas trades on 12 times earnings, with forecast EPS growth of 20%. MXT Metrics Master Income Trust Increased Emerald Capital increased its exposure to Metrics Master Income Trust (ASX: MXT), buying a small amount after a sharp two-month fall, rather than adding to its MOT position. Emerald notes MXT trades at $1.67, a 15% discount to its NTA. It regards MXT as the safer of the two trusts, because most of its portfolio is in debt-type instruments. While waiting for both MOT and MXT to move back toward their NTAs, the fund receives a cash distribution of about 9%. IPX Iperionx Held Pengana Capital Group continues to hold IperionX (ASX: IPX) despite a 16% fall on the ASX, in a month when the company reported what Pengana considers its most important technical result. In September 2026, IperionX validated GenX, its continuous titanium production process. GenX produced more than 500 kg of powder at six times the throughput of the batch process, with much lower power, hydrogen and magnesium use, and all samples met aerospace Grade 5 specifications. The company also secured a second US Army task order of up to US$25.4 million to fund manufacturing equipment in Virginia. Pengana expects product orders to follow. With a market value of about US$530 million, the manager notes US$85 million of cash and an US$813 million NPV for the Titan project. It believes the market ascribes no value to the titanium business and expects further US government support for reshoring titanium supply. MTM Metallium Held Pengana Capital Group continues to hold Metallium (ASX: MTM), a gold and critical minerals processing company, despite a 20% fall in the month, largely after its 30 September 2026 annual report. Pengana notes the report restated prior-period accounts, mainly to correct accounting for the Flash Metals acquisition and share-based payments. New auditor BDO also added a going-concern emphasis, despite A$64.7 million of cash, reflecting the pace of investment at the Texas campus. Operationally, chlorinated testing resumed at Gator Point, and the company completed its first 12-hour campaign running three reactors on platinum group metal-bearing catalytic converter feedstock. Pengana also notes Tim Cooper's appointment as CFO to lead the US-standard audit needed for a Nasdaq listing targeted for the December quarter. First metal production is guided for June 2027. BRE Brazilian Rare Earths Held Pengana Capital Group continues to hold Brazilian Rare Earths (ASX: BRE) despite a 9.2% fall. In September 2026, the company produced its first rare earth concentrate from the stage one pilot plant at Camaçari in Bahia, using feed from Monte Alto. Pengana sees this as an important step toward showing that Monte Alto's high grades can be processed at scale. Stage two, producing separated NdPr oxide, is due for commissioning in mid-2027, with French refiner Carester providing technical support. Pengana notes drilling at Sulista supports a longer mine life than assumed. With a market value of about A$700 million, including about A$130 million of cash, BRE trades at around a tenth of its US$6.0 billion scoping study NPV. The manager also points to a likely market-friendly Brazilian election outcome and recent Brazilian rare earth acquisitions by Lynas and USA Rare Earth as supportive. AYA ARTRYA Held Pengana Capital Group continues to hold Artrya (ASX: AYA), its largest position and biggest detractor in September 2026 after a 16% fall. Artrya made no negative announcements; instead, peer EchoIQ was denied FDA clearance. Pengana believes the read-across is overstated. Artrya's Plaque module, expected to generate about 70% of revenue, is already FDA-cleared and selling, and extra work is being done on its Flow submission. After month end, Artrya signed its fourth and largest US customer, Huntsville Health System, on a five-year agreement. Huntsville is the first paying customer from Artrya's SAPPHIRE clinical study, whose hospitals perform about 400,000 scans a year. Pengana sees replacing HeartFlow, valued at about US$4.3 billion, as a major opportunity, given Salix's better economics and faster turnaround. With about A$74 million of cash, the manager expects an FDA submission for Coronary Flow by year end and further hospital wins. OSL Oncosil Medical Increased Pengana Capital Group increased its position in OncoSil Medical (ASX: OSL), a pancreatic cancer radiotherapy company. The fund took part in a A$5.6 million raising alongside the company's other two largest institutional shareholders, through option exercises and a placement at a 9.9% premium. The shares fell 25%, although Pengana notes company news was positive. OncoSil applied to US Medicare for transitional pass-through reimbursement of US$55,000 per dose under its FDA approval for distal cholangiocarcinoma, well above the roughly EUR23,000 expected in Europe. It also treated its 100th patient in Spain, and its manufacturing partner gained ISO 13485 certification. OncoSil is approved in Australia, the US and Europe. Pengana expects German government funding for a larger study, which would also let German hospitals be reimbursed for using the device. The market cap is about A$26 million, with around $10 million of cash. ACW Actinogen Medical Held Pengana Capital Group continues to hold Actinogen Medical (ASX: ACW), an Alzheimer's disease drug developer whose shares rose 30%. Pengana notes that long-standing shareholder Forrest Capital fully underwrote the company's expiring options, raising A$4.8 million and extending its cash runway to late 2027 or early 2028. This means Actinogen does not need to raise capital before reporting results, strengthening its position in any licensing negotiation. The final patient visit in the pivotal XanaMIA trial was completed, with topline results due in November. The trial is testing oral drug Xanamem in 247 patients with mild to moderate Alzheimer's disease and elevated pTau-181. US and European regulators have agreed that one further pivotal trial would support approval if results are positive. Pengana highlights Xanamem's unique cortisol-lowering mechanism and lack of brain-swelling risk, and expects a licensing deal with a large pharmaceutical partner in 2027 if the results succeed. ARV Artemis Resources Exit Lowell Resources Funds Management sold its investment in Artemis Resources (ASX: ARV) as part of changes to its precious metals holdings. Lowell did not provide further detail on its reasons for exiting. NXM Nexus Minerals Increased Lowell Resources Funds Management increased its position in Nexus Minerals (ASX: NXM) as part of its precious metals exposure. Lowell did not provide further detail on its reasoning. UM1 Unity Metals Increased Lowell Resources Funds Management increased its position in Unity Metals as part of its precious metals exposure. Lowell did not provide further detail on its reasoning. BCM Brazilian Critical Minerals Increased Lowell Resources Funds Management increased its position in Brazilian Critical Minerals (ASX: BCM), a rare earth elements developer, as part of its other metals exposure. Lowell did not provide further detail on its reasoning. BCA Black Canyon Increased Lowell Resources Funds Management increased its position in Black Canyon (ASX: BCA), a manganese developer with a market cap of about $58 million. Lowell notes Black Canyon published a Mineral Resource Estimate for its Wandanya project in northern Western Australia. The global manganese resource is 23.6 million tonnes at 25.8% manganese, including a high-grade component of 16.8 million tonnes at 30.0% and a direct shipping ore component of 3.7 million tonnes at 38.9%. The project also has a global iron resource of 12.5 million tonnes at 54.9% iron. ORD Ordell Minerals Held Lowell Resources Funds Management continues to hold Ordell Minerals (ASX: ORD), which has a market cap of about $40 million. Lowell notes Ordell released the first assays from its recently completed infill RC drilling program at the Barimaia gold project near Mount Magnet in Western Australia. Highlights included 32 metres at 1.6 g/t gold, 19 metres at 2.7 g/t, and 25 metres at 1.9 g/t, including 1 metre at 26.7 g/t. The results will feed into a maiden Mineral Resource Estimate targeted for the fourth quarter of 2026. AAR Astral Resources NL Held Lowell Resources Funds Management continues to hold Astral Resources (ASX: AAR), which has a market cap of about $316 million. Lowell notes Astral signed an agreement with WIN Metals to acquire all mineral rights, excluding lithium, over several adjoining mining leases at its Mandilla gold project, which hosts 1.74 million ounces of gold. Astral will pay WIN a total of $9.05 million once the rights transfers are complete. STN Saturn Metals Held Lowell Resources Funds Management continues to hold Saturn Metals (ASX: STN), which has a market cap of about $376 million. Lowell notes Saturn reported step-out drilling results at its 2.83 million ounce Apollo Hill gold project near Leonora, including 5 metres at 11.3 g/t gold. The drilling extends the mineralised strike length by 1 kilometre to the north-west of the roughly 3-kilometre pit shell outline. WCN White Cliff Minerals Held Lowell Resources Funds Management continues to hold White Cliff Minerals (ASX: WCN), whose share price rose 53% in September 2026. Lowell notes the company reported diamond drilling results at the Danvers 3 prospect within its 100%-owned Rae copper project in Nunavut, Canada. Drilling hit strong near-surface copper sulphides, including 32 metres of chalcocite-dominant mineralisation from 28 metres downhole. This extends mineralisation more than 70 metres vertically above a previous deeper intercept of 33.5 metres at 1% copper. Subject to shareholder approval, Hancock Prospecting will subscribe for $8.8 million of shares for a 13.5% interest. EQU Equus Energy Increased Lowell Resources Funds Management increased its position in Equus Energy (ASX: EQE), a North West Shelf gas developer, as part of its energy exposure. Lowell did not provide further detail on its reasoning. COG COG Financial Services Held Balmoral Investors continues to hold COG Financial Services (ASX: COG), Australia's largest asset finance brokerage and aggregation group, which finances around $8.5 billion a year. Balmoral notes that COG's salary packaging and novated leasing acquisitions since 2025 have become a strong earnings growth driver. The FY26 result beat muted expectations, with underlying NPATA to members up 33% to $32.7 million. Novated leasing was the standout, with EBITDA up 88%. It now contributes more than 55% of group earnings, and further growth is expected from EV uptake, government incentives and acquisitions. Finance broking remained steady despite cautious business demand for new equipment. Balmoral highlights a roughly 20% return on equity, strong cash conversion, an 11 times FY27 price-to-earnings multiple and an expected 4.5% dividend yield. It views management's guidance of more than 10% FY27 EBITDA growth as conservative, although EPS growth will lag because of the higher share count. AMC Amcor Exit Pengana Capital Group sold its investment in Amcor (ASX: AMC) because it believes the positive news on currency and merger synergies has now played out. Pengana notes that risks remain from input cost pressures and consumer weakness. SEK Seek Increased Pengana Capital Group increased its position in Seek (ASX: SEK), continuing to build the holding in a disciplined way during the month. Pengana did not provide further detail on its reasoning. ALD Ampol Reduced Pengana Capital Group reduced its position in Ampol (ASX: ALD), trimming into strength after the shares rose 9%. Pengana acknowledges that the Strait of Hormuz remains disrupted and that Asian refining margins are elevated. However, its thesis is based on longer-lasting effects on global refining supply and an undervalued core retail business, rather than on the oil price. JHX James Hardie Industries Held Pengana Capital Group continues to hold James Hardie Industries (ASX: JHX) despite a 12% fall as rising US bond yields weighed on housing-exposed stocks. Pengana notes that on-the-ground evidence in the US suggests the company's combined siding and decking product offering is working. EVN Evolution Mining Held Pengana Capital Group continues to hold Evolution Mining (ASX: EVN) despite a 13% fall as the gold price retreated on higher real yields and a stronger US dollar. Pengana believes Evolution remains a low-cost producer with a net cash balance sheet. It also points to the company's exposure to both gold and copper and its healthy after-tax cash earnings yield at spot prices. BHP BHP Held Pengana Capital Group continues to hold BHP Group (ASX: BHP) after an 8% fall alongside iron ore prices, which reversed most of its gain following the result. Pengana believes BHP's two core pillars remain intact: large-scale copper and iron ore production. These generate the cash returns to shareholders that sit at the centre of Pengana's valuation framework. ORI Orica Held Pengana Capital Group continues to hold Orica (ASX: ORI), a position it built during the first half, after the shares rose 7% when the company secured replacement ammonium nitrate supply agreements for its US operations. Pengana describes Orica as a classic picks-and-shovels investment in resources demand. It sees the company transitioning from cyclical explosives toward a higher-margin mining technology business with durable returns on invested capital. The manager also notes that Orica is largely unaffected by the direction of individual commodity prices. MGR Mirvac Group Held Pengana Capital Group continues to hold Mirvac Group (ASX: MGR), which has recovered steadily from its June lows. However, Pengana sees rising interest rates as a headwind for Mirvac's apartment and office assets. FLT Flight Centre Travel Increased Pengana Capital Group increased its position in Flight Centre Travel Group (ASX: FLT), continuing to build the holding in a disciplined way during the month. Pengana did not provide further detail on its reasoning. SGP Stockland Held Pengana Capital Group continues to hold Stockland (ASX: SGP), retaining the position because it sees more earnings levers and a portfolio mix better suited to current conditions. ZIP Zip Co Initiated Pengana Capital Group initiated a position in Zip Co (ASX: ZIP), its largest addition for the month, after a 20% fall in the share price. Pengana notes that Zip is a buy now, pay later provider growing revenue by 30% in the highly fragmented US market. It believes operating leverage is improving materially and bad debts are under control. The manager also notes the company remains well provisioned for a potentially deteriorating economic environment. FRS Forrestania Resources Held Firetrail Investments continues to hold, and remains highly convinced about, Forrestania Resources (ASX: FRS), even though the gold developer's shares fell in September 2026. Firetrail notes the company issued around 40 ASX announcements in the month, a record for any of its holdings over roughly 20 years. The key developments were completion of the Edna May acquisition, release of four pre-feasibility studies, and a sharp rebuke from the Takeovers Panel over matters involving Zenith Minerals (ZNC). The manager also points to Chair David Geraghty buying about A$3 million of shares on market as a sign of insider confidence. RHC Ramsay Health Care Held Firetrail Investments continues to hold Ramsay Health Care (ASX: RHC), which kept outperforming after a strong FY26 result in late August 2026. Firetrail notes that during September, French subsidiary Ramsay Santé set out medium-term revenue and margin targets ahead of its planned December demerger from the Ramsay Group. XYZ Block Held Firetrail Investments continues to hold Block (ASX: XYZ) despite the share price falling during September 2026 amid broadly negative sentiment toward consumer-facing growth stocks. Firetrail acknowledges that higher interest rates are a concern. However, it notes management said at a conference that consumer spending and credit trends remained stable through August. Firetrail also highlights Block's plan to make its Cash App Score credit rating product available to external parties, including banks. The manager notes that the data behind the score has shown signs of being more useful than traditional credit scores such as FICO. CGF Challenger Held Firetrail Investments continues to hold Challenger (ASX: CGF), whose shares outperformed in September 2026 during a stronger month for financial stocks. Firetrail attributes part of the improvement to higher interest rate expectations. It notes that a steepening yield curve generally benefits Challenger, because it allows the company to offer more attractive rates on its longer-term annuity products. BGL Bellevue Gold Held Yarra Capital Management holds an overweight position in Bellevue Gold (ASX: BGL), which outperformed in the September quarter as the gold price rose 4%. Yarra attributes the rise to soft US economic data, which pushed bond yields lower and weakened the US dollar. The manager acknowledges that Bellevue's long-term performance still depends on consistent production, cost control and delivery of its growth plans. Even so, Yarra believes the combination of an improving earnings outlook and favourable market conditions supports its positive view. NWL Netwealth Held Yarra Capital Management holds an overweight position in Netwealth Group (ASX: NWL), the wealth management platform, which underperformed during the quarter despite a solid FY26 result. Netwealth also guided to net inflows of $18 billion to $20 billion for FY27, a significant acceleration on FY26. Yarra notes the share price has been held back by higher cost investment in FY27 weighing on margins, concerns about private credit fund lock-ups, and a class action announced late in the quarter. The manager believes all of these issues are temporary and do not change Netwealth's attractive long-term outlook. SFR Sandfire Resources Held Yarra Capital Management holds an overweight position in Sandfire Resources (ASX: SFR), a pure-play copper producer that outperformed as copper prices rose 9% during the quarter. Yarra notes that Sandfire delivered a solid FY26 result, including a higher-than-expected 35 cent per share dividend that reflected its debt-free balance sheet. The manager continues to see Sandfire as the best copper investment on the ASX. Yarra favours copper because supply is declining and becoming more expensive to develop, while demand is supported by electrification, as copper is a key material in batteries and electric motors. EVN Evolution Mining Held Yarra Capital Management holds an overweight position in Evolution Mining (ASX: EVN), which outperformed in the September quarter as gold rose 4% and copper rose 9%. Yarra notes that the company's FY26 results, reported during the period, were largely in line with market expectations. The manager remains attracted to Evolution's long-life assets and its meaningful exposure to copper production at the Ernest Henry and Northparkes mines. ALD Ampol Held Yarra Capital Management holds an underweight position in Ampol (ASX: ALD), even though the petroleum company outperformed on wider refining margins and supply disruption around the Strait of Hormuz. Yarra notes that Ampol's headline FY26 dividend yield of 7.2% depends on these conditions continuing. Through-the-cycle FY28 yields of 4.3% look less compelling against Ampol's 10-year average of 5.1%. Longer term, Yarra believes Ampol remains reliant on fuel margins at a time when convenience store volumes are declining and discount competitors are gaining share. The manager sees this as creating risks of an industry earnings reset and questions how sustainable fuel-driven profitability will be. JMS Jupiter Mines Held Wentworth Williamson continues to hold Jupiter Mines (ASX: JMS), which owns 49.9% of the Tshipi manganese mine in South Africa. Wentworth regards Tshipi as a high-quality, long-life asset with a favourable position on the cost curve in the world's largest manganese-producing country. The manager highlights Jupiter's strong balance sheet and substantial cash position. It expects earnings to strengthen meaningfully as supply tightens, particularly as Australia's GEMCO mine, about 12% of global supply, nears the end of its reserve life. Wentworth also believes Exxaro Resources, an existing strategic shareholder, is well placed to pursue a full takeover if the market continues to undervalue the company. ANG Austin Engineering Held Wentworth Williamson continues to hold Austin Engineering (ASX: ANG), the world's largest maker of customised truck trays and related mining products. Wentworth acknowledges the company has suffered cost overruns and an unfavourable mix of work through its facilities. However, it notes significant work has been done to improve efficiency and renegotiate contracts on better terms. With continued execution, the manager expects a meaningful earnings recovery over the next two years. It notes the shares traded at four times the current price two years ago, and sees no reason they cannot return to those levels if earnings recover. FWD Fleetwood Held Wentworth Williamson continues to hold Fleetwood (ASX: FWD), citing several positive recent announcements. Fleetwood sold its loss-making RV parts division and is closing a NSW manufacturing site that had weighed on its modular building earnings for years. In July 2026, it bought a Karratha accommodation village for $20 million, which Wentworth believes could pay for itself within a year at expected occupancy. FY27 earnings are expected to rise meaningfully after the divestments. The pipeline of work in Karratha remains very strong, with the existing village almost full. The balance sheet holds substantial net cash, and Wentworth expects continued large fully franked dividends. Its base case is at least 50% upside, with further gains if Karratha activity stays strong. SRV Servcorp Reduced Wentworth Williamson reduced its position in Servcorp (ASX: SRV), a global leader in premium co-working and serviced offices, which has been a strong performer for the fund since COVID. Wentworth notes cash accounts for more than 25% of the market capitalisation and the stock trades on a modest 9 times earnings. The manager now sees more limited upside of about 30% and has reduced the position size compared with previous years. However, it believes the strong balance sheet, growing profits and reliable fully franked dividends offer an attractive risk-adjusted return, justifying a continued place in the fund. ORA Orora Held Wentworth Williamson continues to hold Orora (ASX: ORA), which makes glass bottles and aluminium cans in Australia and owns Saverglass, a global producer of premium bottles for wine and spirits brands. Wentworth notes Orora has been hurt by the Middle East conflict, which forced the closure of a production facility in the UAE. A slowdown in global spirits sales has also affected Saverglass. However, the manager is seeing early signs of recovery, with volumes improving in champagne and ultra-premium wine. The Australian operations also continue to grow following a period of heavy capital investment. AVG Australian Vintage Held Wentworth Williamson continues to hold Australian Vintage (ASX: AVG), which it sees as a compelling turnaround of a once-tired beverage company in a challenged industry. Wentworth believes management is executing well, cutting unnecessary costs while investing in higher-growth, higher-margin products. Central to this is Poco Vino, a brand with global ambitions already gaining traction in 12 countries. The manager expects further sales of non-core assets as the business simplifies and strengthens its balance sheet. Despite the progress, the shares still trade at a large discount to underlying value. Wentworth sees potential for roughly tenfold upside if execution continues. HLS Healius Held Wentworth Williamson continues to hold Healius (ASX: HLS), one of Australia's three largest pathology providers, which it added earlier in 2026. Healius has just under 2,000 collection centres and 72 laboratories. Wentworth notes the former Primary Health Care has been simplified into a pure pathology business, with net cash above 40% of its market capitalisation after selling its last non-core asset, Agilex. Pathology rebates have been effectively frozen since 1999, and Healius lagged peers in responding, leaving its margins well below theirs. The manager waited for evidence of progress on cost cuts and a new IT platform before investing. If margins approach peer levels, Wentworth estimates profit could exceed $50 million, implying equity value of about $750 million, more than 2.5 times the current market cap. It also sees potential takeover interest, subject to regulatory approval. Load older comments
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