Here's why the Alexium (ASX:AJX) share price surged 9% today

The advanced materials company has big things in store in FY22.

| More on:
child in superman outfit pointing skyward, indicating a rising share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Alexium International Group Ltd (ASX: AJX) share price fired up today after the advanced materials company announced a trading update for the fourth quarter of FY21.

At the close of trading, Alexium shares were swapping hands for 6.5 cents, up 4.8%, after surging 9% higher to 6.8 cents for much of the afternoon.

How did Alexium perform for Q4 FY21?

Investors are driving up the Alexium share price following a significantly strong performance from the company.

For the 3 months ending 30 June 2021, Alexium reported sales of US$2.2 million and cash receipts of US$1.6 million. While cash receipts remained in line with the prior reporting period, sales numbers experienced a substantial uptick. The sales result was attributed to new product lines that included the Total Mattress Cooling System (TMCS) and BioCool products.

The TMCS achieved its first sales and commercial launch during the quarter. The coupling of textile and foam products for a mattress design has seen growth in the United States bedding market. Alexium anticipates that further significant growth will follow into other TMCS designs. Full-scale production is projected to be reached sometime in the first half of FY22.

In addition, Alexium rebranded its Phonon technology to Eclipsys during the reporting period. The pending patent technology is seen as a breakthrough in thermal management for textile and foam-based consumer products.

The company said the product application is stated to continually pull heat away from the user, cooling them up to 200% more than competing products. This is particularly important as when a projectile is fired into the body armour, it causes significant thermal stress on the wearer.

Currently, the technology is being developed for the body armour market and is in late-stage evaluation, scheduled for H1 FY22.

Lastly, the company completed a successful production scale of its FR NyCo technology through a rolled goods application. A flame retardant nylon/cotton fabric is being sought after as Alexium works towards optimising the chemistry integration. It believes the garment slated for military use will be available for testing in the coming months.

Management commentary

Alexium CEO Bob Brookins commented:

For the Alexium team, we are at the most exciting time that I have seen since I joined the company. While there are a number of factors contributing to this sense of excitement, I believe the greatest driver here is the commercial success we are having across our product platforms.

The Alexium share price has gained around 20% over the past 12 months, and is up 17% year-to-date.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.
Opinions

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »

A fortune teller looks into a crystal ball in an office surrounded by business people.
Share Market News

What's the outlook for shares vs. property in FY25?

Generally speaking, there is optimism among the experts for both shares and property in FY25.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Best Shares

Top ASX shares to buy before earnings season

It's almost time to take a look at the books!

Read more »

sad party goer sitting alone after celebration
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a horrible end to its trading week this Friday.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »