CRP, LIC, AGL, GXH: 4 NZX penny stocks with steep YTD returns

FY23 did not begin on a good note due to weak investor sentiment amid the COVID-19 pandemic, further undermined by factors like the Russia-Ukraine war, monetary tightening measures and high inflation.

The benchmark S&P/NZX50 ended lower on Friday, down 1.01% at 11,629.17 after registering 0.5% gain on the day before. The S&P/NZX SmallCap Index also ended the day 1.16% lower at 88,127.28.

However, there are some penny stocks that managed to give good returns YTD. Penny stocks are stocks of companies with a small market cap that trade at a low price and are majorly illiquid.

Here is a list of 3 penny stocks that delivered steep YTD returns this year.

Source: © 2022 Kalkine Media®

Chatham Rock Phosphate Limited (NZX:CRP)

Chatham Rock runs as a mineral exploration company and is involved in the development and utilisation of the Chatham Rise rock phosphate deposit offshore NZ. CRP has a market cap of $22.9 million and has given a YTD return of 109.68%.

DO READ: From GNE to WBC: 3 NZX stocks with over 7% dividend yield

The Group attained FIRB’s approval on 19 April to acquire the key Korella Phosphate mine from Australia Venus Resources. The cash generation from phosphate sales will mark a transformative point for the Company.

CRP ended the day 3.85% in green to close at $0.27.

Livestock Improvement Corporation Limited (NZX:LIC) 

Livestock Improvement is an agri-tech and herd development co-operative in NZ. LIC promotes livestock farmers by providing them enhanced genetics and technology. It has a market cap of $220.9 million and has given a YTD return of 27.69%.

ALSO READ: ATM, FCG, SML- 3 NZX stocks in focus as global dairy prices tumble

LIC registered a 6.2% rise in revenue to $35.6 million, driven by a strong performance in its artificial breeding and herd testing services. It expects underlying earnings to be between $22 million and $26 million for FY22.

LIC ended the day flat to close at $1.66.

Accordant Group Limited (NZX:AGL)

Accordant Group is one of the biggest recruitment firms of NZ that provides staffing services. AGL has a market cap of $69.98 million and has given a YTD return of 15%.

For the six months ended 30 September 2021, AGL reported a $4.5 million rise in revenue to $110.4 million.

As NZ borders have now opened to international tourists from certain countries, the Group has plans to seek migrant labour and qualified IT professionals. The Group has a healthy work pipeline in the second half of FY22.

AGL ended the day flat to close at $2.07.

Green Cross Health Limited (NZX:GXH)

Green Cross is the primary healthcare provider of NZ. It has a market cap of $193.2 million and has given a YTD return of 14.29%.

DO READ: RYM, ARV: 2 NZX retirement village stocks on investors’ radar in May

The company witnessed increased revenue of nearly 16% for the 11 months to 28 February 2022. GXH expects its FY22 NPAT to surpass the previous period’s result by $9 million to $10.5 million.

GXH will release its full-year results on 27 May 2022. Green Cross ended the day 0.74% in red to close at $1.35.

Bottom Line

Investing in penny stocks must be undertaken after conducting proper research and due diligence as these stocks are highly volatile.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)