The Fairfax press has reported that staff at JB Hi-Fi Limited (ASX: JBH) have been run off their feet recently, which bodes well for the business and its shareholders moving forward.
JB Hi-Fi was widely tipped to be one of the biggest beneficiaries of the government's second Federal Budget, which had a particular focus on families and small businesses in an effort to encourage greater spending. In particular, small businesses with annual turnover of less than $2 million were gifted the ability to claim an immediate tax-deduction on any work-related items with a value up to $20,000.
JB Hi-Fi is one of Australia's specialist electronics retailers which has enjoyed strong growth over the last decade or so, despite the challenges facing the bricks-and-mortar retail industry. It has managed to do so thanks to its knack for keeping its products up-to-date with customers frequently returning to the stores to update their devices.
In this instance, JB Hi-Fi is likely to benefit from strong demand for items such as laptops, monitors, tablets and smartphones – all of which are necessary devices in many small businesses – with the tax break running through to 30 June, 2017. Harvey Norman Holdings Limited (ASX: HVN) and Dick Smith Holdings Ltd (ASX: DSH) are also in a position to benefit.
As it stands, the shares trade at $20.63 and offer investors a generous 4.3% fully franked dividend yield. Although JB Hi-Fi's stock has surged more than 43% since mid-October 2014, it could still represent good value for long-term investors.
In a recent trading update, JB Hi-Fi said that it has continued to see good sales momentum in the second-half of the year and confirmed guidance of $3.6 billion in sales and between $127 million and $131 million in net profit after tax (NPAT).
