MaxiTRANS pulls ahead

MaxiTRANS surged on Friday on results that beat expectations for 2012-13 and solid growth potential for the current financial year.

Transport equipment maker MaxiTRANS Industries (MXI) is one of the second best performing stock on the Uncapped 100 as its earnings raced ahead of market expectations.

The stock is up 9.3% to a five-month high of $1.41 in afternoon trade after the company reported a 111% surge in net profit to $26 million as revenue lifted 31% to $362.5 million for the year ended June 30, 2013.

The profit line was ahead of analysts’ expectations of $25.4 million, although sales came in below consensus of $382.5 million.

However, investors were not too concerned about the sales miss given the good outlook for MaxiTRANS with a strong harvest in 2013-14 expected to drive solid demand for its tippers.

The removal of the political uncertainty once the federal election is out of the way should also see business confidence rebound, and that should translate to better orders for MaxiTRANS’ products.

Further, management believes it will start benefitting from its rebranding exercise and launch of new products in the current financial year.

I highlighted the good growth potential of MaxiTRANS, which is part of the Uncapped 100, back in February (see Three small cap pocket rockets).

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles