Two ASX penny stocks with positive outlook for FY24

Highlights

• Acrow provides smart integrated construction systems, and Ora Banda Mining is a gold exploration and development company
• In 1HFY24, ACF delivered 52.91% YoY increase in its EBITDA to AUD 35.20 million
• OBM’s revenue jumped 47% YoY to AUD 96.35 million

Acrow Limited (ASX:ACF) is an Australian company which offers smart integrated construction systems, including formwork, industrial services, and commercial scaffolding across the country. Ora Banda Mining Limited (ASX:OBM) is an ASX-listed gold exploration and development company. The company focuses upon mine development, mineral exploration and sale of gold in Western Australia.

Acrow Limited (ASX:ACF)

Highlights of latest financial performance

In the first half of the financial year 2024 (1HFY24), the company reported a 27.63% YoY increase in sales to AUD 101.03 million, 52.91% YoY growth in EBITDA to AUD 35.20 million and 33% YoY surge in underlying NPAT to AUD 16.22 million.

Revenue growth during the reported period was driven by improved performance across the Industrial Services and Formwork division, and increased equipment hire across all divisions.

Historical financial trends

Top 10 shareholders of ACF

The top 10 shareholders of ACF have around 32.71% shareholding in the company, while the top four have 20.77% of the shareholding. Perennial Value Management Ltd., Keneco Property Pty. Ltd. have the highest stakes in the firm with a shareholding of ~8.45% and ~4.34%, respectively.

Outlook

On 1 May 2024, ACF reaffirmed its revenue and EBITDA guidance for FY24. The company anticipates FY24 revenue of AUD 215-225 million, a 31% increase over the previous corresponding period (pcp) and expects EBITDA to be AUD 73-76 million, reflecting a 40% YoY growth. ACF intends to achieve a minimum 40% ROI in FY24.

For the 10 months leading to April 2024, hire contract wins increased by 13% YoY, while the hire revenue pipeline jumped 27% to AUD 150 million.

Additionally, ACF's Industrial Services division has performed strongly following the acquisition of MI Scaffold in November 2023. The division is now projected to contribute approximately 40% of group revenue on a pro-forma basis, having secured multiple projects during 1HFY24.

Share performance of ACF

ACF shares closed 0.45% higher at AUD 1.11 apiece on 3 July 2024. In the past one year, ACF’s share price has gone up by 45.10%, and in the last three months, it has dropped by almost 5.13%.

The 52-week high of ACF is AUD 1.345, recorded on 4 March 2024, while the 52-week low is AUD 0.73, recorded on 11 July 2023.

ACF Daily Technical Chart, Source: EODHD/Others

Ora Banda Mining Limited (ASX:OBM)

Highlights of latest financial performance

In the first half of FY24, the company witnessed around 47% YoY rise in its revenue to AUD 96.35 million, driven by increased gold production and around 16.30% rise in the average selling price. During the reported period, the bottom line of OBM turned positive to AUD 10.79 million, compared to a net loss of AUD 21.24 million in previous corresponding period.

Historical financial trend

Top 10 shareholders of OBM

The top 10 shareholders of OBM have around 68.84% stake in the company, while the top four have almost 54.70% of the shareholding.

Outlook

OBM anticipates producing 67,000 to 73,000 ounces of gold in FY24 at an AISC of AUD 2,275 to 2,475 per ounce. This guidance reflects a 40% increase in gold production and a 20% reduction in AISC per ounce compared to FY23.

The company aims for over 100,000 ounces of gold production in FY24. Further, the company is focusing on shifting operations from low-grade open pits to high-grade underground feed.

Share performance of OBM

OBM shares closed 1.49% lower at AUD 0.33 on 3 July 2024. In the last one year, OBM witnessed a 153.85% increase in its share price and recorded a rise of 32% in the last six months.

The 52-week high of OBM is AUD 0.385, recorded on 24 June 2024, while the 52-week low is AUD 0.078, recorded on 25 August 2023.

OBM Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 3 July 2024. The reference data in this report has been partly sourced from EODHD/Others.

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