Hydrix (ASX:HYD) share price falling despite positive AGM update

The Hydrix share price has fallen lower today as the company held its annual general meeting for 2020. We take a closer look.

The Hydrix Ltd (ASX: HYD) share price is trading lower despite a positive update at the company's annual general meeting (AGM) this afternoon. Shares in the innovative small cap have dropped 3.57% to trade at 27 cents at the time of writing.

A male ASX investor wearing glasses and a beanie and denim shirt puts his hand to his chin wondering whether to buy ASX shares

Image source: Getty Images

What was covered at the AGM?

Hydrix executive chair Gavin Coote told investors how the company's strong product innovation has lead to an impressive year.

Driving the Hydrix share price was its 16% revenue growth, which was up to $15.7 million. This is turn lead to $1.2 million in operating profit.

Furthermore, the company retained a strong balance sheet with $9.5 million cash on hand.

This growth has seen the Hydrix share price trading 25% higher than at the same time last year, and outperforming the All Ordinaries Index (ASX: XAO) by 24.57%.

What does Hydrix do?

Hydrix is a product innovation company that aims to enhance people's wellbeing through three growth platforms. These are: 

  • Hydrix Services – designs and engineers client products
  • Hydrix Ventures – generates equity returns through investing in companies
  • And Hydrix Medical – the most notable platform, it aims to bring innovative medical technologies to market. The implantable heart attack warning system is one such example that has largely behind the company's share price gain this year.

From these platforms, Hydrix boasts more than 200 client programs over its 18 years in existence.

What now for the Hydrix share price?

Also at today's AGM, Hydrix management outlined some anticipated events in coming months.

These include the submission of its AngelMed battery testing results to the United States Food and Drug Administration (FDA). There is potential for its first ever implants to come in the third quarter of FY21, the company said.

In addition, if the company gains FDA approval for its AngelMed device in quarter four, it would expect significant ramifications for the Hydrix share price.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ASX Share Market News

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week for investors this Friday.

Read more »

REIT on wooden circles with real estate investment trust written above on a yellow background.
REITs

6 ASX REITs just hit 52-week lows. Do any brokers say buy?

Several ASX real estate investment trusts (REITs) have hit 52-week lows as the property sector underperforms the market on Friday.…

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: CBA, Capstone Copper, Codan shares

Let's take a look at some new ratings from the experts.

Read more »

a woman peers over a surface with a happy, curious look on her face with eyes wide as though she is overhearing something.
Broker Notes

5 ASX 200 shares brokers tip to rocket 25% to 77%

Looking for buy-the-dip opportunities in today's weak market? Experts reveal their buy calls.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Morgans tips 290% upside for this up-and-coming ASX copper company

This company is in the right place at the right time, the broker says.

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

In a tough retail environment, what's the outlook for Wesfarmers shares?

Analysts argue the major retailer is resilient in the face of tough trading conditions.

Read more »

Two work colleagues looking at a laptop and discussing something.
Broker Notes

Buy, hold, sell: Aristocrat, Liontown, and Navigator Global shares

Let's see what Morgans is saying about these shares.

Read more »

Man using his device in an airport.
Broker Notes

This ASX 200 share is tipped to return over 50%

Bell Potter sees potential for this stock to deliver very big returns.

Read more »