Let's see what the broker is saying about them and whether it thinks they are in the buy zone right now:

A2 Milk Company Ltd (ASX: A2M)

Morgans was pleased with this infant formula company's strong start to FY 2026 and has upgraded its estimates to reflect this.

However, while it is a fan of the company, it feels that its shares are fair value at current levels and has retained its hold rating with a $9.40 price target. It said:

A2M has had a stronger than expected start to FY26 and consequently, it has upgraded its sales and NPAT guidance. We have upgraded our forecasts and forecast strong growth from FY27 onwards. While we rate the company and its management team highly, we believe that the stock is trading on fair multiples (FY27 PE of 31.5x and PEG of 1.8x). We maintain a Hold rating with a new price target of A$9.40.

Mach7 Technologies Ltd (ASX: M7T)

Morgans has responded positively to the release of this enterprise image management systems provider's strategic transformation plans. It believes it positions the company for sustainable growth in the coming years.

As a result, the broker has retained its buy rating with a trimmed price target of 76 cents. This is almost 70% higher than where its shares trade today. It said:

M7T released its strategic transformation plans at its AGM, introducing a customer-focused operating model and the upcoming Flamingo AI platform to drive long-term growth, efficiency, and new revenue through modernised imaging solutions. Despite potential near-term revenue softness, the transformation is well-aligned with industry trends and positions M7T for sustainable growth and signals genuine innovation and a commitment to delivering what radiology customers want.

VEEM Ltd (ASX: VEE)

A third ASX share that Morgans has been looking at is marine, defence, and mining products manufacturer.

While its recent trading update was softer than expected, the broker remains positive and sees plenty of upside for investors. In light of this, it has upgraded its shares to a speculative buy rating with a $1.10 price target. This implies potential upside of 30% for investors from current levels. It commented:

VEE's AGM update was softer than expected, primarily due to delays in receiving ASC orders and a hold-up in obtaining security clearance for the Hunter-class propeller project. Additionally, anticipation around the launch of the Mark III gyro led to purchase hesitancy among potential customers in 1H26. These delays have shifted some work to 2H26, which management expects to be stronger, driven by significant contributions from defence (particularly ASC).

While the trading update was disappointing, we believe VEE's outlook remains positive with multiple growth opportunities across defence (eg, HII, Northrop Grumman, Hunter Class Frigate Program), propulsion (VEEM Extreme, Sharrow), and gyros (Mark III). Timing of order flow remains uncertain, which is likely to cause earnings volatility in the near term. However, the long-term earnings potential of these opportunities remains significant.

The post Morgans gives its verdict on A2 Milk and these ASX shares appeared first on The Motley Fool Australia.

For instance, earlier this year the Australian government announced plans to invest an additional $50.3 billion into the Australian Defence Force. 

Global security also took centre stage at the June 2025 NATO summit where member states agreed to raise defence and security-related spending to 5% of GDP by 2035.

This new target marks a sharp increase from the previous 2% goal set in 2014.

Such commitments shine a light on defence-sector businesses listed on the ASX.

For example, two leading defence-focused exchange traded funds (ETFs) have been soaring in 2025.

Shares in the Vaneck Global Defence ETF (ASX: DFND) have climbed by 66% since the start of the year.

And the Betashares Global Defence ETF (ASX: ARMR) has also ballooned by 54% during the same period.

Then there's DroneShield Ltd (ASX: DRO), one of the best performing stocks on the ASX in 2025.

Shares in this counter-drone technology specialist have exploded by 580% since early January.

But there are other lesser-known ASX defence stock quietly making waves of their own.

Below we introduce three such companies with rocketing share prices.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems specialises in electro-optical and laser technologies for the defence and space industries.

More specifically, it develops high-end defence systems such as remote weapon stations, counter-drone solutions, and space intelligence technologies.

Overall, it has been designing, manufacturing, and exporting advanced technology systems for nearly 40 years.

In August, the company announced a maiden $125 million order for its laser defence system designed to defend against drone swarm attacks.

More recently, it sealed a $108 million contract with the Australian Defence Force for its remote weapon system.

After securing new orders, the group's contract backlog now sits at about $299 million – $163 million higher than at the end of 2024

In the past six months, shares in Electro Optic Systems have surged by 418%.

Vection Technologies Ltd (ASX: VR1)

Vection develops extended reality (XR) software and services to help businesses integrate their physical and digital worlds.

It uses technologies such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI), and 3D solutions to improve efficiency for its clients.

Management noted that the defence sector emerged as a structural growth driver for the business in FY25.

During the fiscal year, this it sealed about $19 million in defence contracts, including a record $7.2 million order.

Subsequently, it nailed down its largest ever contract with a $22.3 million multi-year master framework with a NATO-approved partner operating in the European defence sector.

Shares in Vection are up by 175% since mid-April.

VEEM Ltd (ASX: VEE)

VEEM designs and manufactures cutting-edge propulsion and stabilisation systems for the luxury motor yacht, ferry, commercial workboat, and defence industries.

Its products allow marine vessels to achieve higher speeds, improve fuel economy, and help lower noise and vibration.

In FY25, the group generated a total of $68.6 million in revenue, including $15.6 million from defence sales.

Management noted that defence is a fast-growing segment of the company.

VEEM recently secured a nine year Manufacturing Licence Agreement with global defence and security company Northrop Grumman.

Initially valued at US$33 million, the deal will see VEEM provide equipment into the US defence supply chain.

It builds on attaining HII-NNS approved supplier status and Level 1 accreditation which qualifies VEEM to manufacture components for the US defence system.

In August, the company also signed a six year contract valued at $65 million to continue supplying critical components for Australia's Collins Class submarines.

VEEM's share price is up by 65% in the past six months.

The post These 3 little-known ASX defence stocks are booming amidst sector-wide surge appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is down over 4% to $1.97. This appears to have been driven by weakness in the uranium industry which has offset the release of an announcement today. That announcement confirms it has completed its leadership change after CEO, Duncan Craib, stepped down from the role on 30 September. He has been replaced by Matthew Dusci, who was previously its chief operating officer. Dusci said: "It will be a great privilege to lead Boss. My immediate focus is on delivering the operational review previously announced, along with safely achieving our FY26 production guidance from the Honeymoon operation of 1.6M lbs. Creating value for shareholders in the years ahead is a priority as we seek to capitalise on the opportunities Boss has within its global asset portfolio."

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down over 2% to $22.81. This has been caused by the furniture retailer's shares going ex-dividend this morning for its final dividend of FY 2025. When Nick Scali released its results in August, it declared a fully franked final dividend of 33 cents per share. This was flat on the prior corresponding period. Eligible shareholders can now look forward to receiving this late this month on 28 October.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 7% to $2.34. Investors have been selling down ASX lithium stocks on Wednesday after Chinese authorities approved a reserve report from a major lithium producer. This has eased concerns around output disruptions in the country, contributing to expectations of continued lithium price pressure from oversupply.

VEEM Ltd (ASX: VEE)

The VEEM share price is down 4.5% to $1.78. This appears to have been driven by the release of a broker note out of Ord Minnett this morning. The marine, defence, and mining industries products developer's shares have been downgraded to a hold rating from buy with a trimmed price target of $1.75 (from $1.90). It made the move after management provided earnings guidance for the first half which was materially below expectations. And while its performance is expected to improve in the second half, Ord Minnett doesn't believe it will be enough to achieve its expectations for FY 2026.

The post Why Boss Energy, Nick Scali, Pilbara Minerals, and VEEM shares are dropping today appeared first on The Motley Fool Australia.

That's because the team at Morgans has just given these small cap ASX shares buy ratings. Here's what it is saying about them:

Accent Group Ltd (ASX: AX1)

While this footwear focused retailer has been doing it tough recently, Morgans was pleased to see that FY 2026 has started positively.

In light of this, the broker believes that there is value in its shares at current levels and has upgraded them to a buy rating with a $1.65 price target. This implies potential upside of approximately 11%. It said:

AX1's FY25 result was at the upper end of guidance with EBIT largely flat on the pcp. Sales turned negative in the 2H, and gross margins were weak driven by the highly promotional environment. Sales in the first 7 weeks of FY26 have turned positive and AX1 has provided guidance for FY26, expecting high single digit EBIT growth. AX1 plans to open 30 stores and 4 Sports Direct Stores, the first one opening in November in Melbourne. We have lowered our EBIT FY26 by 2%, with FY27 EBIT largely unchanged. This has been driven by lower store openings, higher gross margins, offset by lower costs. Our valuation reduces to $1.65 (from $1.85). We have upgraded to a BUY.

Monash IVF Group Ltd (ASX: MVF)

Another small cap ASX share that could be worth considering is embattled fertility treatment company Monash IVF.

The broker thinks that it is a long-term thematic play and a medium-term turnaround opportunity. However, it classes it as a speculative buy with a 96 cents price target, so it may only be suitable for investors with a high risk tolerance. This price target suggests that upside of 40% is possible from current levels. It said:

MVF delivered a FY25 result with revenue and EBITDA slightly ahead of expectations, offset by higher depreciation and interest, while underlying NPAT of A$27.4m landed in line with guidance. However, FY26 guidance was well below expectations with a weak 2H25 exit rate expected to continue into 1H26 combined with cost pressures and one-offs following independent review recommendation implementations. As it stands, MVF remains a long-term thematic play with a medium-term turnaround opportunity with strong structural growth drivers still firmly intact. We have revised down our short-term forecasts and set our target price at $A0.96 (was A$1.00). We maintain a SPECULATIVE BUY recommendation.

VEEM Ltd (ASX: VEE)

Finally, this marine, defence and mining industries products company could also be a small cap ASX share to buy according to the broker.

Morgans likes Veem due largely to the potential of its defence business. It has put a buy rating and $1.30 price target on its shares. This implies potential upside of 16% for investors. Morgans said:

VEE has made two significant announcements related to its Defence business over the past week: 1) Renewed contract with Australian Submarine Corp (ASC) for a further 6 years, valued at $65m; and 2) Received approved supplier status for the Huntington Ingalls Industries Newport News Shipbuilding (HII-NNS) Australian Submarine Supplier Qualification (AUSSQ) program that will allow VEE to enter the US submarine shipbuilding supply chain. We see these developments as positive for VEE's future growth potential in the Defence sector. […]

We continue to believe in VEE's long-term growth potential, supported by sizeable addressable markets in propellers (US$2.7bn) and gyros (US$14.6bn), as well as an increasingly positive outlook in Defence – a sector VEE has served since 1988.

The post These small cap ASX shares could rise 10% to 40% appeared first on The Motley Fool Australia.

Let's jump in to see what this ASX small-cap company just reported.

FY24 headline numbers

These were some of the highlights from the result:

• Revenue increased by 35% to $80.6 million
• Earnings before interests, taxes, depreciation, and amortisation (EBITDA) increased by 48% to $14.8 million
• Net profit after tax increased by 70% to $7 million
• The company declared a final dividend of 0.77 cents per share, bringing the total FY24 dividend to 1.54 cents per share

VEEM delivered solid earnings growth despite expensing one-off costs, including $0.8 million for the Sharrow project and $0.5 million related to liver cancer treatment research. 

On this last point, it's important to note that the company has been contributing its knowledge of induction heating technology in a research project with a Perth liver surgeon for the treatment of liver cancer for several years. The company decided to amortise the total amount relating to this project, which has led to this one-off pre-tax deduction against a profit of $0.5 million.

ASX small-cap firing in all cylinders

Overall, VEEM reported strong FY24 numbers in many aspects. 

The highlight of the result was surging revenue from VEEM gyro stabilisers, the company's flagship product that innovates how ships are stabilised. The company sold 18 gyro stabilisers, generating $12.3 million in revenue, a substantial increase from $5 million in FY23.

An accelerated order from Strategic Marine largely drove the growth. In FY24, the company made VEEM's gyro stabiliser a standard feature on its fast crew boats.

In addition, VEEM's propulsion business saw strong demand, particularly for its fixed-pitch propellers. Propulsion revenue jumped by 26% to $35.3 million, with propellers alone contributing $29.1 million. The growth was supported by the installation of new machining centres. The company also automated the propeller manufacturing process.

VEEM entered into a partnership with Sharrow Engineering to design and manufacture Sharrow propellers, targeting inboard vessels up to 5 metres in diameter. The initial rollout is focused on select customers, with first deliveries and sales expected in 1H FY25. 

Management believes its strong momentum will continue into FY25, highlighting "significant barriers to entry" for its gyro stabilisers, strong global demand for VEEM's propellers, and the rollout of Sharrow-by-VEEM propellers.

ASX small-cap share price performance

The VEEM share price has nearly three-folded over the past year, but it has been going sideways since April.

The VEEM share price is up 8% this morning, approaching its all-time high of $2.02.

The post Why is this ASX small-cap jumping 8% after releasing FY24 results? appeared first on The Motley Fool Australia.

What attracts people to ASX small-cap shares is their ability to respond quickly to new opportunities or changes in the market. This agility can lead to rapid growth. However, remember that while the opportunity for big rewards exists, these stocks can also be quite volatile. Investing in them comes with a mix of high hopes and risks.

With that caveat, let's dive into 3 ASX small-cap shares that I think have promising growth potential.

PWR Holdings (ASX: PWH)

PWR Holdings is a great example of a company using its strong skills in one area to grow into other industries.

Founded in 1997 by Kees Weel, who is still the CEO today, PWR Holdings has become a top player in advanced cooling systems. The company is a global leader in this niche, providing high-performance products for motorsport, automotive, aerospace, and defence industries.

While the company is best known for its motorsports division, the aerospace and defence industry is growing fast.

In 1H FY24, the company reported robust results, as revenue grew by 22.2% to $64.2 billion, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 27.2% to $18.4 billion. While the motorsport sector's 19% revenue growth was solid, the real surprise came from the aerospace and defence sector which saw an impressive 124% growth in revenue. The sector represented 12% of the total revenue, up from 7% a year ago.

Over the past decade, PWR Holdings has delivered stable earnings growth, superior profitability, and high return-on-equity ratios.

The PWR Holdings share price closed Monday at $10.94. Its shares are valued at a price-to-earnings (P/E) ratio of 34x on FY25 earnings estimates using S&P Capital IQ.

VEEM Ltd (ASX: VEE)

If there's a leader in PWR Holding for the global cooling systems market, there's also VEEM for the global marine precision parts market. VEEM introduced products that aimed to enhance efficiency and safety within its industry.

Founded in 1968, VEEM makes advanced marine technology and engineering parts, servicing both the defence and commercial marine sectors. Over the years, VEEM has established a strong reputation for innovation and quality, positioning itself as a key player in the global marine technology market.

This expertise and market leadership led to two exciting opportunities for VEEM. Several years ago, VEEM launched VEEM gyrostabilisers, an innovative product that replaces traditional propeller-based stabilisation. While the product's revenue was just $5 million in 1H FY24, it brings a big market potential. Management estimates its total addressable market would be US$1.1 billion for new builds.

The other exciting venture is VEEM's partnership with Sharrow Engineering. Last year, the two companies announced an exclusive agreement to adapt Sharrow's design to a wider range of vessels. While it's still early days, VEEM saw a positive outcome from initial testing and plans to launch this product line throughout FY25.

VEEM is tightly held by insiders, with Managing Director David Miocevich owning over 50% of the company.

The VEEM share price closed Monday at $1.72. According to S&P Capital IQ, its shares are valued at an FY25 P/E ratio of 30x.

Smart Parking Ltd (ASX: SPZ)

Smart Parking is the smallest company of the three, with a market capitalisation of $173 million, which puts it at the border between small-caps and micro-caps.

The company is growing fast by scaling up its operations. This company has presence in Australia, New Zealand, the UK, Germany, and Denmark.

As the name suggests, Smart Parking specialises in smart parking technology, which helps drivers find available parking spaces more easily and efficiently. Its systems include real-time parking information, automated payment options, and advanced monitoring tools. Smart Parking aims to make parking simpler and more convenient for both drivers and parking operators.

The number of parking sites managed by Smart Parking has grown from 250 in June 2017 to 1,219 in December 2023. During this period, revenue rose from $24.8 million in FY17 to 45.2 million in the last 12 months. As it built scale and operational efficiency, EBITDA margins improved from just 4% in FY17 to over 20% in the last 12 months to December 2023.

In terms of total addressable markets, management estimates there are approximately 45,000 sites in the UK, 90,000 sites in Germany, and 10,000 sites in Denmark. That's a total of 145,000 parking sites, giving a long runway for growth.

The Smart Parking stock closed at $0.48 on Monday, implying a FY25 P/E ratio of 19x, according to S&P Capital IQ.

The post 3 ASX small-cap shares I think have explosive growth potential appeared first on The Motley Fool Australia.

Many ASX shares offer excellent opportunities, and smart investors are looking for shares with strong capital growth potential.

As we approach FY25, here are three growth-focused ASX shares that I think are worth considering for the upcoming financial year.

PWR Holdings Ltd (ASX: PWH)

First up is cooling solutions provider PWR Holdings. The company designs and manufactures high-performance cooling solutions for automotive, motorsport, and industrial applications.

PWR serves top-tier global clients, including Formula 1 teams and major automotive manufacturers.

The retail stock reported an excellent set of numbers in its 1H FY24 results, with its revenue rising 22.2% to $64.2 billion and EBITDA up 27.2% to $18.4 billion. Strong growth in the aerospace and defence segment, up 124% from a year ago, continued to support its business, while motorsport revenue delivered a robust 19% growth.

This positive development led the PWR Holdings share price to hit its all-time high of $12.98 in February. However, since then, the share price has dropped about 14% to $11.00 at the time of writing.

At the current share price, PWR shares are trading at 35x FY25 earnings estimates by S&P Capital IQ, mid-point of its trading history of between 20x to 52x. While this is not exactly cheap, I tend to agree with my colleague Tony that the high-quality shares are rarely cheap.

VEEM Ltd (ASX: VEE)

My next pick is ASX small-cap share VEEM, which makes advanced marine technology and engineering parts. The company is well-known for its high-quality gyro stabilisers (gyros), propellers, and other precision parts used in the marine, defence, and aerospace industries.

VEEM is a small ASX company, but it has a presence in the global market and two exciting growth opportunities ahead of it.

VEEM gyros are an innovative product that replaces traditional propeller-based stabilisation. The company has the dominant position in this interesting niche.

In 1H FY24, its gyro sales were $5 million, with orders in hand of $9.2 million. While this may still look small compared to its total revenue of $37.5 million, the company sees a total addressable market of US$1.1 billion from this product. So, it's a long runway for growth.

The company is collaborating with another industry leader, Sharrow Engineering, to adapt Sharrow's design to a wider range of vessels. In this exclusive agreement, VEEM would manufacture and sell Sharrow-designed propellers worldwide for inboard-powered vessels. In April 2024, VEEM saw a positive outcome from initial testing and hopes to launch this product line throughout FY25.

The VEEM share price has more than quadrupled over the past year, after hitting an all-time low of 40 cents in July 2023. VEEM shares are trading at 30x FY25 earnings estimates, based on S&P Capital IQ.

DUG Technology Ltd (ASX: DUG)

The last share to discuss is DUG Technology. The company provides high-performance computing solutions, software, and data analytics services. It specialises in innovative cloud-based services, and high-performance computing (HPC). DUG is a global business with offices in Australia, Asia, Americas and Europe.

This ASX small cap share also provides an artificial intelligence (AI) angle.

In June, the Perennial Natural Resources Trust manager Sam Berridge said DUG could offer direct exposure to the AI boom, as my colleague James summarised. He highlighted DUG's patented immersion cooling technology, which the company claims provides 90% savings in electricity use and manpower.

In 3Q FY24, the company delivered a 39% growth in revenue to US$17.6 million and a 24% growth in EBITDA to US$4.6 million. In response to strong demand, the company is planning to establish a new business unit in the Middle East.

The DUG share price more than doubled over the past year and is at a price-to-earnings ratio of 38x using FY25 estimates by S&P Capital IQ.

The post 3 of the best growth-focused ASX shares to buy in June appeared first on The Motley Fool Australia.

One area of the ASX that the broker has been looking at is the small cap space.

The good news for investors that dabble with the small side of town is that its analysts believe that the tide is turning for small cap ASX shares, making now a great time to make some investments.

The broker commented:

Small-caps continue to look constructive. Small-caps have historically bounced hardest upon confirmation of a flattening-out in the rates cycle. Several ingredients remain in place supporting a rebound in this space (rates, trading/fundamentals, sentiment/positioning). We think the tide is turning for small-caps, and now is an opportune time to build exposure to forgotten small-caps.

Which small cap ASX shares?

Morgans has named a total of seven forgotten small cap ASX shares that it likes for earnings season. They are as follows:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

Morgans has an add rating and $22.00 price target on this biopharmaceutical company's shares.

Credit Corp Group Limited (ASX: CCP)

The broker has an add rating and $18.75 price target on this debt collector's shares.

DGL Group (ASX: DGL)

This industrial solutions company's shares have an add rating and $1.05 price target on them.

Helloworld Travel Ltd (ASX: HLO)

Its analysts have an add rating and $4.26 price target on this travel company's shares.

IPH Ltd (ASX: IPH)

This intellectual property services company's shares have an add rating and $8.15 price target on them.

Veem Ltd (ASX: VEE)

Veem is a designer and manufacturer of disruptive, high-technology marine propulsion and stabilisation systems for the global luxury motor yacht, fast ferry, commercial workboat, and defence industries. Morgans' last rating on the company was an add rating and $1.00 price target.

Vulcan Steel Ltd (ASX: VSL)

Morgans has an add rating and $9.00 price target on this steel manufacturer's shares.

The post Morgans names 7 small-cap ASX shares to buy for earnings season appeared first on The Motley Fool Australia.

After disappointing investor expectations, the marine technology company's shares have fallen by 13.64% to trade at 76 cents each at the time of writing.

Veem reports weakened result for H1 FY22

The Veem share price is heading south today following the company's performance for the six months ending 31 December 2021. Here are some of the key highlights:

• Total revenue of $26.3 million, down 7.4% on the prior corresponding period (H1 FY21 $28.4 million)
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $2.9 million, down 49% (H1 FY21 $5.7 million)
• Net Profit After Tax (NPAT) of $0.3 million, down 90% (H1 FY21 $3 million)
• Earnings Per Share (EPS) of 0.2 cents per share, down 91% (H1 FY21 2.3 cents per share)
• Unfranked interim dividend of 0.0007 cents per share.

How did Veem perform in H1 FY22?

As foreshadowed at the company's annual general meeting (AGM), there were a number of factors that impacted the above results.

The first was the company vigorously competing for staff in a very tight labour market caused by border closures. This means that Veem has been unable to recruit many skilled tradespeople when needed. This, in turn, constrained capacity (production hours) and increased costs through payment of overtime and higher wages.

In addition, raw materials price increases have eroded margins, particularly the bronze (copper and nickel) used for propellers.

The company has also been impacted by a surge in freight costs and shipping times which have affected its margins.

At year's end, Veem had a cash balance of $4.6 million and an undrawn overdraft facility of $3.4 million.

What's the outlook for Veem?

Looking ahead, Veem is confident that it can continue driving growth of its gyrostabiliser product in the global marine market.

Notably, the company is the only major supplier in the large marine gyrostabiliser market. The total addressable opportunity is valued at US$1.1 billion for new builds and US$13.5 billion for retrofits.

Management noted that its significant investment and ongoing development provides a major barrier for entry for potential competitors.

The global demand for propellers is expected to remain robust, with Veem already increasing its manufacturing capacity last month.

The company expects sales of propellers to increase in line with capacity and also be boosted by price rises.

In addition, Veem's defence revenue is expected to remain strong. Deliveries under the upcoming Collins Class submarine full cycle docking are scheduled to commence in April 2022.

Nonetheless, investors have sold off the Veem share price after the company advised that revenue over the next period will likely be similar to the first half. This is due to the tight labour market, rising raw materials and freight costs, freight and supplier uncertainty, and COVID-related issues.

The company refrained from providing earnings or profit guidance for the FY22 full year.

Veem share price snapshot

The Veem share price is down more than 19% year to date and almost 16% over the past 12 months.

The company has a current market capitalisation of around $103 million.

The post Double-digit losses: Veem (ASX:VEE) share price sinks 14% following first-half results appeared first on The Motley Fool Australia.

At the time of writing, the marine technology company's shares are up 7.21% to 92 cents. However, despite the strong gains made today, its shares are down by more than 20% in a month.

Veem provides sales update

The Veem share price is pushing ahead after the company announced a strong order book since its 17 November update.

In today's release, Veem advised that it has received six orders for its gyrostabilisers, worth $2.2 million. This brings the total orders in hand to $5 million, with $1 million expected to be delivered this month.

Veem noted that the order book includes repeat purchases from three prestige boatbuilders for the luxury superyacht market. Namely, the customers are Alia in Europe, and Westport and the United States.

Furthermore, Damen – a Dutch defence, shipbuilding, and engineering conglomerate company – has started a marketing campaign for the use of VEEM Marine gyrostabilisers on its FCS 5009 vessels.

Currently, Veem has a 3-year agreement with Damen for the supply of gyros as an option onboard its FCS workboats.

The company also appointed Dennis Bravenboer as its new head of sales & business development in Europe. Mr Bravenboer will start the role in January 2022 and oversee the European marketing and sales division.

What did the managing director say?

Veem managing director Mark Miocevic commented:

We are pleased, but not surprised, to land these new orders in rapid succession over the last few weeks. Based on our leads and enquiries, we are very confident the orders will continue to increase through the second half of FY2022.

The Damen marketing campaign to introduce and recommend the VEEM Marine gyros, and in particular the VG520SD, to their client base is a great step forward for VEEM in the commercial markets with Damen being such a highly regarded shipbuilder.

We are very pleased to have been able to secure the services of Dennis Bravenboer to drive our European sales and marketing program for VEEM Marine. Dennis' background in the sales and marketing of engineered marine products is outstanding and with our support we expect him to hit the ground running in 2022.

Veem share price summary

The Veem share price has gained almost 40% in the past 12 months and is around 10% higher year-to-date.

Based on the current share price, Veem commands a market capitalisation of $125.54 million, with 135.72 million shares on issue.

The post Veem (ASX:VEE) share price leaps 7% on upbeat sales data appeared first on The Motley Fool Australia.

The rise comes after the company announced the federal government has placed an order with it for $9 million worth of submarine refurbishments.

Let's take a closer look at today's news.

What's affecting the VEEM share price?

In a statement to the ASX, VEEM says it has already received $3 million, and expects another $6 million, from government enterprise ASC Pty Ltd "in relation to the next full cycle docking for the Collins Class [submarine] maintenance program."

VEEM says the contract is based on a "sophisticated scheduling approach" that takes into account uncertainties from COVID-19 and future metals prices.

The company claims this will provide more certainty to ASC and allow VEEM to better forward plan. Work will begin within the next financial year with the first deliverables due by July 2022.

The order is similar to one ASC placed with the company in March 2020 – also for $9 million. The VEEM share price increased 5.4% on that day.

Management commentary

VEEM managing director Mark Miocevich said of today's news:

The new order from ASC is further demonstration of our reputation for precision engineering to the exacting defence standards of the Royal Australian Navy. This order will provide certainty to our planning and positively impact our profitability in the 2022 and 2023 financial years.

VEEM share price snapshot

Over the past 12 months, the VEEM share price has risen by around 217%. Unlike many other ASX companies, VEEM did not experience significant financial shock relating to the pandemic. So arguably, the increase in its share price could be attributed to genuine business growth rather than a rebound from the COVID-driven market sell-off.

While servicing the defence industry is an important segment of VEEM's business, it is not the only one. The company's value shot up by around 7% in March after it announced partnerships with Italian superyacht builders.

VEEM has a market capitalisation of around $168 million.

The post Why the VEEM (ASX:VEE) share price just shot 15% to an all-time high appeared first on The Motley Fool Australia.

At the time of writing, the marine technology company's shares are up 5.8% to $1.08. This puts its shares within a whisker of its all-time high of $1.15 reached earlier this month.

Sales update

The Veem share price is racing higher as investors appear pleased with the company's presence in the Italian superyacht construction market.

According to its release, Veem advised that it has received orders for its gyro stabilisers from two Italian clients, Rossinavi and Overmarine. This marks the first time the company has added these two prestigious superyacht builders to its books.

Overmarine, a designer and builder of superyachts for more than 30 years, produces luxury and long-range yachts branded Mangusta. The Italian boat maker ordered 2 Veem gyros for its new Mangusta 165.

Rossinavi, on the other hand, an Italian manufacturer of custom steel and aluminium superyachts. The luxury yacht builder is seeking to purchase one Veem gyro for its new superyacht design.

While Veem did not reveal the value of the orders, it stated that its order book stands at $5 million. Around $3.5 million of the gyros is expected to be included in sales during the current half.

Addressable market opportunity

Veem highlighted the "huge" market opportunity for its gyros, referring to a report published by Super Yacht Times. The article noted 710 vessels were in the global superyacht construction order book on 1 January 2021. This represents an addressable market of more than $260 million in sales for Veem gyros.

In addition, the company said that there is a total of 9,233 vessels around the world that are considered superyachts. Over the past year, this number grew by 1.7%. Veem hopes to capture this market through retrofitting its gyros on the existing fleet of superyachts.

What did the managing director say?

Veem managing director Mark Miocevic commented:

We expect orders to continue once customers have experienced the benefits of the significantly greater stabilisation and demand VEEM Gyros as part of their new builds.

Having orders in hand already to deliver $3.5m of sales this half gives us confidence that the trend of significant sales increases year on year will continue.

Mr Miocevic said the superyacht fleet represented a huge market for VEEM Gyros, both in the new constructions underway and the retrofit potential.

Our current sales, while growing rapidly, are only a small portion of the potential within the superyacht, commercial and defence addressable markets.

About the Veem share price

The Veem share price has gained more than 130% in the past 12 months and around 30% year-to-date.

Based on the current share price, Veem commands a market capitalisation of $140.4 million, with 130 million shares on issue.

The post Here's why the Veem (ASX:VEE) share price is surging 5% today appeared first on The Motley Fool Australia.

The sharp gains come following the company's release of its results for the first half of the 2021 financial year.

Veem is a marine technology company that produces propulsion and stabilisation systems for private, commercial and government vessels.

What results did Veem report?

In this morning's ASX release, Veem provided an unaudited update on its expected results for the half year to 31 December 2020. It said the audited results will be released later this month.

The company reported revenues of $28.4 million for the half year. That's up 36% from the previous corresponding period.

Earnings before income, tax, depreciation and amortisation (EBITDA) of $5.7 million were up 111% from the first half of the 2020 financial year. Veem noted that figure includes $1.5 million it received from the government's JobKeeper program.

Net profit after tax (NPAT) posted a 233% increase from the previous corresponding period, reaching $3.0 million.

The company said its gyrostabilisers sales were particularly strong, with the $3.6 million in revenue up 73% from the previous corresponding period.

Earnings per share (EPS) of 2.3 cents were up 229%.

Commenting on the results, Mark Miocevich, Veem's managing director said:

The continued increases in sales of VEEM Gyros with minimal increase to the overhead burden should continue to see the business generate strong EBITDA and cash flow. Across the business, and within Gyros, propulsion and defence specifically, we continue to see evidence of strong sales and profit potential for the rest of 2021.

VEEM is in the strongest position it ever has been with an existing robust core business which has allowed us to invest and support our focus on the rapid growth of our disruptive VEEM Gyro product into the global marine market. Following the signing of the framework agreement with Damen, one of the largest European shipbuilders, we are now on the cusp of delivering on what we have known for some time is a game changing opportunity.

Veem share price snapshot

Veem shares have been a star performer over the past year. The company proved highly resilient to the COVID-19 market rout, with the share price falling less than 6% from late February through to 23 March.

Over the past 12 months the Veem share price is up 79%. In 2021, shares are up a more subdued 2.4%.

By comparison the All Ordinaries Index (ASX: XAO) is flat over the past 12 months.

The post The Veem (ASX:VEE) share price is soaring 14% today. Here's why appeared first on The Motley Fool Australia.

The Veem share price climbed to a record high of 88 cents but has since retreated to 84.5 cents as it nears close of trade today.

Based in Perth, Western Australia, Veem designs and manufactures marine propulsion and stabilisation systems for global luxury motor yacht, fast ferry, commercial workboat and defence sectors.

The company's market leading gyrostabilisers (gyros) significantly reduce the rolling motions of vessels in waves. In turn, this enables sea-time in rough conditions and also helps reduce sea-sickness.

What did Veem announce?

The company has achieved its sales target, with revenue recorded at $3.6 million for the half-year ending 31 December. The company sold 8 gyrostabilisers in what has been a growing market since 2018.

At current, the company's order book has $3.9 million worth of products. In comparison, the corresponding period in 2018 achieved just over half a million in revenue.

Veem said that almost all gyros sales were for superyachts, offshore supply vessels and charter boats. However, there were some retrofit sales to Damen – a Dutch defence, shipbuilding, and engineering conglomerate company based in the Netherlands. This included an offshore supply vessel in the Gulf of Mexico and a local West Australian charter boat.

After demonstrating the capacity of its new gyro facility, the VG1000SD, the company sold 2 units to Damen. Currently, Veem has a 3-year agreement with Damen for the supply of gyros as an option onboard its FCS workboats.

In addition, Mexican offshore contractor, Naviera Integral, will use the new gyro onboard its Damen FCS vessel in sea trials next month. Both companies have a strategic alliance together where Damen provides workboats to Naviera Integral.

Words from the managing director

Veem managing director Mark Miocevich welcomed the performance, saying:

We are very pleased to see the sales of VEEM Gyros continue to increase strongly and to have delivered on our guidance provided to the market for the first half of FY21.

Given our level of inquiries, orders in hand, the Damen frame agreement and increased capacity in our Gyro facility, we expect this sales trend to continue.

About the Veem share price

The Veem share price is breaking new ground today after bottoming out at a multi-year low of 37 cents in June last year.

The post Why the Veem (ASX:VEE) share price hit an all-time high today appeared first on The Motley Fool Australia.