RAK, WDT, ERD: 3 NZX tech stocks creating buzz among Kiwis

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RAK, WDT, ERD: 3 NZX tech stocks creating buzz among Kiwis

Tech stocks
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Highlights

  • NZ is famous for its highly advanced tech sector
  • Rakon posts FY22 record earnings
  • Wellington Drive Technologies conducts its 2022 ASM

New Zealand boasts a highly advanced and diverse tech sector, which is a key contributer to the nation’s economy.

According to Stats NZ in 2021, 39% growth was witnessed in sales of ICT software and services, which stood at NZ$13.0 billion. Moreover, sales of IT services rose 34% to NZ$9.0 billion during the said period.

Moreover, Kiwi ICT companies are known for being flexible, adaptable, entrepreneurial as well as resilient. Also, since last year, the annual list of NZ’s best tech companies and start-ups to work for has doubled to 100, indicating massive growth of the tech industry across the country.

Do Read: Look at the 5 largest NZX tech stocks

With this overview, let us look at the three NZX-listed tech stocks that can be explored by NZ investors.

NZ tech stocks- RAK, WDT, ERD

Source: © 2022 Kalkine Media®

Rakon Limited (NZX:RAK)

Rakon Limited, which is world-famous for manufacturing frequency control products, has a market cap of over NZ$344 million.

A few days ago, the Company released its FY22 performance, wherein it posted record earnings for the year, despite facing COVID-19-related challenges and global supply chain disruptions. Its revenue clocked NZ$172.0 million, up 34% on pcp, and its underlying EBITDA climbed 132% to NZ$54.4 million, steered by continued demand growth in 5G and industrial positioning, sustained core market growth and opportunities created by worldwide chip shortages.

Related Read: Rakon reports spectacular full-year results; registers record earnings

The management has decided to allocate the FY22 cash surplus towards capital investment, acquiring skills and R&D projects.

RAK boasts a strong development pipeline and continues to focus on its rapid growth momentum.

On 31 May, at the time of writing, RAK was trading flat at NZ$1.510.

Wellington Drive Technologies Limited (NZX:WDT)

A well-known supplier of IoT solutions for the commercial refrigeration industry is Wellington Drive Technologies Limited, which has a market cap of around NZ$68 million.

Recently, WDT conducted its Annual Shareholder Meeting. Resolutions for re-electing Keith Oliver and John Scott as directors of the Company were passed.

Another resolution related to authorising its directors to determine fees and expenses of the auditor was also carried out.

On 31 May, at the time of writing, WDT was down 3.13% at NZ$0.155.

Also Read: GSH, WDT, CBD - 3 NZX penny stocks witnessing a jump today

EROAD Limited (NZX:ERD; ASX:ERD)

Functioning in the global telematics industry, EROAD Limited has a market cap of over NZ$270 million.

A few days back, the Company published its FY22 results posting revenue growth of NZ$114.9 million from last year’s NZ$91.6 million, driven by Coretex’s merger and organic growth across all markets. Also, it also reported an EBITDA of NZ$21.0 million.

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It continues to witness growth across both its new and existing customers, as well as a huge number of customer renewals.

ERD anticipates its FY23 revenue to be in the range of NZ$150 million-NZ$170 million and is optimistic about building greater growth momentum over FY23 and beyond.

On 31 May, at the time of writing, ERD was declining 2.00% at NZ$2.450.

Bottom Line

Despite facing global supply chain issues and challenges posted by the Delta and Omicron variants, NZ tech companies have remained resilient and continue to focus on their growth strategy.

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