2 top mid-cap ASX shares that could be long-term buys

There are some promising ASX shares in the mid-cap space. They could be buys, including IT distributor business Dicker Data Ltd (ASX:DDR).

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Some mid-cap ASX shares are very promising and might be good ideas to own for the long-term.

These businesses are smaller than some of the ASX's blue chips and have growth plans.

Here are two to keep an eye on:

BWX Ltd (ASX: BWX)

BWX is Australia's leading natural beauty business. It has a number of different brands including Sukin, Mineral Fusion, Andalou Naturals, Nourished Life and now Flora and Fauna.

Flora and Fauna is a leading online retailer that is focused on vegan, ethical and sustainable products. In FY20 that business generated $12 million of net sales and forecast to be in the range of between $16.4 million to $17.1 million for FY21. It made $10 million of net sales in FY19.

BWX plans to combine Flora and Fauna with Nourished Life to form a new direct to consumer business unit within BWX.

The mid-cap ASX share explained:

The new business unit will provide an online retail powerhouse focused on a multi-category portfolio of better-for-you, healthy and sustainable products, 80% of which are not available in mainstream retail.

A couple of months ago BWX signed a strategic partnership with Chemist Warehouse Group. It was a 5-year equity-linked deal between the two businesses. It will see the entire range of BWX products available on the Chemist Warehouse online store. It will also have an increased presence in-store for Mineral Fusion and Andalou Naturals.

BWX is expecting to grow its revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by at least 10% in FY21.

According to Commsec, the BWX share price is valued at 29x FY22's estimated earnings.

Dicker Data Ltd (ASX: DDR)

Dicker Data is a technology hardware, software and cloud distributor. The business says it prides itself on developing strong long-term relationships with our customers, and helping them grow.

The business distributes a wide portfolio of products from the world's leading technology vendors, including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo and Microsoft.

Dicker Data was able to grow through the difficult COVID-19 FY20 year with net operating profit before tax growth of 27.7% to $81.8 million. It was able to adapt to help with remote working conditions. The company says that IT hardware, software and the internet will continue to be business critical services for today's remote and digital workforce.

After just completing a new distribution centre, the mid-cap ASX share already has plans for an additional 18,620m2 second stage expansion for future growth. This will lead to substantial inventory growth and technology portfolio diversification to meet emerging and evolving needs of the Australian market.

Profit growth has continued into the first quarter of 2021. Revenue fell 3.5% to $447.7 million, but profit before tax rose 5.7% to $19.4 million. As a result of supply constraints and sustained demand, the gross profit margin increased to 10%, up from 9.7%.

It managed to achieve that profit growth despite a record first quarter in 2020 driven by the remote work movement as a result of COVID-19.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited and Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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