Why Megaport and Bapcor shares zoomed up on ASX?

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Bapcor (ASX:BAP) and Megaport (ASX:MP1)  are amongst the top gainers on ASX on 10 February 2022. By the end of the trading session on  10 February 2022, BAP shares were up over 10% from the previous close, while MP1 shares surged over 7.5%.

The growth in their respective share prices is driven post these companies posted their half yearly results for the period ended 31 December 2021.

In this article, we will look at how these companies have performed in their half-yearly results.

Asia Pacific's leading provider of vehicle parts, accessories, equipment, services, and solution, Bapcor Limited, delivered a solid performance in 1H FY2022. Despite ongoing COVID-19 challenges, the Company delivered strong revenue growth. 1H FY2022 proforma NPAT is in line with the full-year guidance provided by the Company at the Annual General Meeting in October 2021.

Revenue in Q2 FY2022 increased substantially compared with Q1 FY2022 because of the ease in the lockdowns and COVID restrictions. Thus, establishing a positive trajectory going into H2 FY2022.

BAP declared a 100% franked interim dividend of AU 10 cents per share, up 11.1% compared to the 1H FY2021 dividend.

In FY2022, the Company aims to deliver pro forma earnings at least at the level of FY2021. H2 FY2022 is likely to be stronger than the 2H FY2021. However, it is subjected to no further material COVID-19 impacts.

The leading provider of Elastic Interconnection services, Megaport Limited (ASX: MP1), has reported strong growth across all operating metrics over the previous half. Its revenue in 1H FY2022 increased 42% to AU$15.2 million compared to the previous corresponding period. Monthly recurring revenue increased 46% from December 2020. The business generated a profit after direct costs of AU$30.9 million, up 69% on pcp. By the end of 1H FY2022, the Company had net cash of AU$104.6 million.

In December 2021, BAP achieved 2,455 customers across 768 Enabled Data Centres in 190 cities.

In August 2021, the Company acquired InnovoEdge, and it moved rapidly to integrate the InnovoStudio service with MP1's NaaS platform. The partners would now be able to use Megaport ONE to integrate their own unique services into MP1's NaaS environment and provide complete IT solutions so their clients can orchestrate, network, and enable critical network, compute, as well as application resources in real-time.

In the coming period, the Company would focus on executing the plan and achieving revenue and EBITDA targets.

What next?

The above two companies have a positive outlook for the remaining period of FY2022. Thus, it would be interesting to watch these companies' steps to achieve their targets for FY2022.

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