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:
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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.
