2 high-quality ASX 200 shares to buy today

EML Payments Ltd (ASX:EML) and this other S&P/ASX 200 Index (ASX:XJO) share are high-quality and could be worth owning.

| More on:
mineral resources top ascx shares to buy in 2021 represented by piggy bank sitting alongside wooden blocks saying 2021

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are quite a few high quality S&P/ASX 200 Index (ASX: XJO) shares out there.

These businesses have grown to be leaders in their respective industries and could be worth owning for the long-term.

Growth plans by management have the long-term in mind and these two ASX shares could be performers for a portfolio over the next few years:

Brickworks Limited (ASX: BKW)

Brickworks is a diversified business. Not only does it have the building products divisions, which it's best known for, but it also has other asset divisions. It owns a big 40% stake of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

The business is particularly excited by the growth potential of its 50% share of an industrial property trust which had a net asset value (NAV) of $777 million at the end of the FY21 first half.

Unlike some other property sectors, industrial real estate has been particularly resilient throughout the COVID-19 pandemic. It saw negligible rental arrears or deferments.

The ASX 200 share is undergoing a period of unprecedented development with the property trust. There is significant land for further development at each of its remaining estates. Across these estates there is a total of 171,300 square metres of lease pre-commitments already secured.

The completion of these facilities over the next two years will result in gross rent within the trust increasing by around $38 million, which is a 40% rise from the current level. The rental income per gross lettable area achieved for these developments is significantly greater than the current leased portfolio. This reflects the evolution towards more sophisticated and specialised facilities. It includes things like robotics, automation and multi-storey warehousing.

In addition to the pre-committed developments, a further 336,900 square metres of GLA is available for development within the trust. This provides further opportunity for growth in the years ahead.

EML Payments Ltd (ASX: EML)

EML Payments is a leading payments business that provides the technology for various clients in different sectors.

It has three important divisions – general purpose reloadable (GPR), gift and incentive and virtual account numbers.

Some of its uses include gaming payouts, salary packaging, commission payouts, incentives and rewards, gift cards and gift cards for malls.

The ASX 200 share is generating a lot of growth right now. In the six months to 31 December 2020, it saw gross debit volume growth of 54% to $10.2 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 42% to $28.1 million and underlying net profit growth of 30% to $13.2 million.

EML recently bought open banking business Sentenial, which includes Nuapay. The combined group is expected to process in excess of $90 billion of gross debt volume in FY22.

Sentenial is currently connected to 1,750 banks and growing across Europe. Nuapay is one of only a few open banking products in the marketplace.

Sentenial has a highly scalable platform that has had continual investment to future proof the business and allows for agile developments and rapid growth. Management said it's well positioned to export the technology globally.

EML believes it will be uniquely positioned to support clients with all of the different payment solutions, including open banking.

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends EML Payments. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 no-brainer ASX shares to buy with $200 right now

You don't need a brain to see that these shares could be top picks right now.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX growth stocks worth buying with $7,000 in your portfolio today

These stocks are all historic market beaters.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 ASX 200 shares with huge growth potential in the next decade

Analysts think these growth shares could be in the buy zone in July.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Growth Shares

Where I'd invest $5,000 into ASX 300 growth shares

These stocks have excellent growth potential.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »

A couple stares at the tv in shock, one holding the remote up ready to press.
Growth Shares

3 high-conviction ASX 200 stocks to buy and hold

Brokers think these shares are among the best to buy now.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Growth Shares

The smartest ASX growth stocks to buy with $3,000 right now

Analysts think these shares would be top picks for smart investors.

Read more »

A laughing woman wearing a bright yellow suit, black glasses and a black hat spins dollar bills out of her hands signifying the big dividends paid by BHP
Growth Shares

2 Australian stocks that could turn $10,000 into $100,000

Let's see why these shares could be destined for bright long-term futures.

Read more »