The Inflation-Proof ASX200 Share Enjoying Revenue Growth, Comments Equithy Senior Account Manager Adam Goldman
W
ith Australia’s inflation rate at uncomfortably-high levels, many investors are growing concerned about how this could impact different businesses. Although some ASX 200 stocks have performed well over the last week, specifically energy and finance sectors, others will take a hit.
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Atlas Arteria Shows Impressive Prospects
There’s a need for people to invest in something that could offer returns despite growing prices everywhere. It’s common knowledge that buyers will cut down on spending in various areas like retail and leisure, which makes related shares a bad choice. But no matter how difficult the economic condition gets, Equithy senior account manager Adam Goldman comments that people will still need to commute. Hence, a good example in this case is Atlas Arteria, a global developer and operator of toll roads.
It’s on the list of ASX 200 shares, and the company currently owns toll road businesses in the US, Germany, and France. Among the different types of ASX 200 shares, it’s one of the few belonging to the infrastructure domain.
Atlas Arteria Releases Q2 Report for FY2023
Recently, Atlas Arteria released its Q2 report for the 2023 fiscal year. It indicates that traffic volumes are steadily increasing as economies across the globe recover from changes that occurred during the pandemic. At the same time, Atlas Arteria is planning to increase the toll prices it charges drivers.
As a result, Adam Goldman of Equithy expects that the percentage growth with respect to the revenue on its roads will have a greater impact than the increase in traffic volumes. In the last quarter, which ended on June 30, APRR traffic increased by 4.2 percent compared to Q2 last year, while revenue increased by 7.4 percent.
Traffic passing through Adelac is up by 4 percent, while revenue has jumped by 9.7 percent. As for Warnow Tunnel, traffic volumes are up by almost 7 percent, while revenue has increased by almost 14 percent. Because of expected roadworks, traffic at Chicago Skyway has decreased by 7.6 percent, but revenue has gone up by 2.4 percent. Meanwhile, volumes at Dulles Greenway have gone up by 5.6 percent, which is a revenue increase of about 7.2 percent.
Defensive Shares Can Act as Hedge Against Inflation
Equithy’s senior account manager Adam Goldman refers to these shares as defensive shares because of Atlas Arteria’s business model. It implies that they can be suitable investments in times of economic uncertainty. Not to mention, they can act as a hedge against inflation – an investment that grows despite the effects of inflation.
Currently, the share price is around $6.21, with the ALX share closing the day down by 0.96 percent. Nevertheless, it’s quite likely that revenue will steadily rise within the next couple of years. Therefore, investors looking to diversify their portfolio and include shares that can protect them from the risks of inflation can consider it.
