Quite a few of the impressive shares on the ASX are trading lower today thanks to some market volatility.
Lower prices can mean better value for prospective investors, assuming the companies haven't released any negative news like what has happened to Synlait Milk Ltd (ASX: SM1) today.
These businesses are ones that have large growth plans in place:
Altium Limited (ASX: ALU)
Altium management have a plan to becme the world's leading electronic PCB software business.
The Altium share price has fallen by more than 1% today and it's now trading at around $26, which is a fall of around 35% since the 52-week price high in mid-October 2020.
Whilst the company is struggling in the face of COVID-19 impacts to its customers and the overall industry, the company is seeing green shoots of a recovery.
In the FY21 half-year result it said that Octopart revenue went up by 19% to US$10.8 million as electronic manufacturing rebounded during the half. Altium says that this is a positive leading indicator for PCB design growth that should drive Altium Designer sales in the second half of the financial year.
A lot of the planned growth is pinned on Altium 365, its online collaboration platform for its software. This is where management see a major opportunity.
Altium CEO Aram Mirkazemi said:
Altium 365 is key to our future success through indirect monetization from our CAD software tools and, in time, direct monetization from the broader ecosystem. I am most heartened by the strong adoption of Altium 365 and, with our Netflix organisational changes behind us, I am confident of a much stronger second half. Early signs are positive for this.
However, the ASX share's management said that with the lingering uncertainty, FY21 full year revenue guidance (excluding the TASKING business due to the sale) is expected to be at the lower end of the range, from US$190 million to US$195 million and an earnings before interest, tax, depreciation and amortisation (EBITDA) margin in the range of 37% to 39%.
According to Commsec, the Altium share price is valued at 42x FY23's estimated earnings.
City Chic Collective Ltd (ASX: CCX)
The City Chic share price is currently down 4.4% as part of the market decline.
Its customer base is plus-size women, it sells items including apparel, footwear and accessories. Those products are sold across a number of different brands including City Chic, Avenue, Evans, CCX, Hips & Curves and Fox & Royal.
Avenue (US-based) and Evans (UK-based) target a broad customer base across conservative and fashion, both of which have a large online customer base. Hips & Curves and Fox & Royal are online intimate brands in the US and ANZ respectively.
City Chic has a goal of a 'leading a world of curves' and the CEO, Phil Ryan spoke of the progress that the company has been making towards its global goal:
Over the last two years, we have more than doubled our global active customer base to 801,000, increased online penetration from 40% to 73% and grown our northern hemisphere business from 16% to 45% of total sales. We now have three banner brands which have very strong brand recognition, customer loyalty and traffic in their respective home countries and we will leverage these platforms to sell all our brands around the globe.
The ASX share reported sales growth of 13.5% to $119 million, underlying EBITDA growth of 21.8% to $23.3 million and statutory profit growth of 24.8% to $13.1 million. Normalised operating cash flow was $21.5 million.
City Chic said that in the first eight weeks of the second half of FY21, strong comparable growth of sales has continued.
The City Chic share price is valued at 23x FY23's estimated earnings, according to Commsec.
