4 NZX industrial sector stocks that can be considered in 2022

Highlights

• A well-developed industrial sector provides the base for the advancement of a nation and also paves the way for rapid income generation.
• ikeGPS Group reports a 40% jump in its revenue, underpinned by an increased customer base.
• Rakon’s COO to be appointed as its CEO next year.

The industrial sector steers the economy of a nation and helps various other sectors to boost their performance by supplying them with the latest and modernised equipment.

Further, the export of industrial goods expands the country’s trade and commerce, thereby pumping in the much-needed foreign exchange.

With this backdrop, let us walk through the four popular industrial stocks on the NZX.

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ikeGPS Group Limited (NZX:IKE; ASX:IKE)

ikeGPS Group Limited had recently released an impressive half-year performance ended 30 September 2021.

It reported a 40% revenue growth to NZ$5.7 million, on a constant currency basis, steered by increased enterprise customers subscribing to the IKE platform and rising transactions being processed through its software.

Related Read: ikeGPS (NZX:IKE) reports surge in revenue during FY22 half-year results

Moreover, the Group witnessed a 135% jump in its new contract wins during the said duration.

Also, it has maintained a strong cash position with zero debts and around NZ$32 million as cash and receivables towards the end of the half year.

IKE expects a strong 2H FY22 performance, with a strong sales pipeline underway.

On 31 December, at the closing bell, ikeGPS Group fell by 1.18% at NZ$0.840.

Rakon Limited (NZX:RAK)

One of the most prominent industrial stocks across NZ, which is engaged in providing frequency control products, is Rakon Limited. A few days back, the Company revealed that its Chief Operating Officer would now take charge as Chief Executive Officer from April next year onwards.

Must Read: Which are the 4 fastest growing NZX stocks to explore in 2022?

Dr Sinan Altug, the current COO, has held many key positions in the frequency control industry before joining RAK, and the Company is looking forward to his visionary leadership.

On 31 December, at the closing bell, Rakon was up by 1.96% at NZ$2.080.

Scott Technology Limited (NZX:SCT)

Scott Technology Limited focuses on delivering smart robotic solutions to its customers. The Company had conducted its Annual Shareholder Meeting last month. Its shareholders passed resolutions related to the re-election of its retiring directors, namely, Brent Eastwood, John Thorman and Edison Alvares.

Also Read: Why to explore 5 NZX technology stocks ahead of 2022?

Moreover, a resolution to increase the total remuneration payable to its directors by NZ$100,000 p.a. was carried out, apart from reappointing Deloitte as the auditor.

On 31 December, at the closing bell, Scott Technology climbed by 1.56% at NZ$3.250.

Wellington Drive Technologies Limited (NZX:WDT)

Wellington Drive Technologies Limited is a leading global supplier of advanced electronic IoT solutions. A few days ago, the Company provided FY2021’s trading guidance with revenue and EBITDA to be around US$47 million and NZ$3.9 million, respectively, underpinned by strong customer demand, though also being impacted by supply-chain disruptions and increased freight costs.

Interesting Read: Are there any NZX shares to be explored under NZ$1?

Further, anticipating enhanced operational performance improvements and further increased demand for its products, WDT expects a climb of 25% to US$60 million for FY21022 and NZ$100 million towards the end of FY2023.

On 31 December, at the closing bell, Wellington Drive Technologies gained 5.13% at NZ$0.205.

Bottom Line

The industrial sector is vital for the agriculture, telecommunications, transport, health, and numerous other sectors of a nation.