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Highlights

  • VEEM's share price surged 155.46% in the past year.
  • FY24 net profit after tax increased by 70% YoY, with record revenue growth of 35% YoY.
  • VEEM expects further growth in FY25, with international demand for propellers and defence projects driving revenue.

VEEM Limited (ASX:VEE) is an ASX-listed company which designs and manufactures cutting-edge marine propulsion and stabilisation systems for the luxury motor yacht, fast ferry, commercial workboat, and defence industries. The company also builds high-performance propellers, fin systems, and specialised components while investing in R&D for future innovations.

VEEM has gained significant limelight recently with shareprice rising by a whopping 155.46% over the last year.

In the financial year 2024 (FY24), the company’s net profit after tax increased by 70% YoY to AUD 7.0 million, backed by record growth of 35% YoY in revenue to AUD 80.6 million. The financial performance was driven by increase in propeller capacity and rise in the working hours and productivity. The period saw 30% surge in propulsion sales, significant rise in defence revenue and over 2x growth in Gyro sales, generating AU$12.3 million in revenue.

Moreover, cash flow from operations surged by 77% YoY in FY24 to AUD 8.4 million, enabling debt repayments of AUD 4 million.

The company expects its core business to maintain activity levels in FY25 while enhancing revenue growth through launch of new products, expansion of market and improving margins. In FY25, the international demand for propellers is expected to continue, supported by expanded marketing and sales team, new equipment, and ongoing rollout of SHARROW with sales anticipated to begin in FY25 and growth into FY26.

Further, defence revenue is anticipated from the finalisation of projects like the Colins Class submarine in first quarter of FY25, ongoing partnership with prime contractors and delivery of the Hunter demonstrator campaign, expected to assist in securing further defence contracts.

It is worth mentioning that the top 10 shareholders of VEEM have around 74.59% shareholding in the company with highest stake held by VEEM Corporation Pty. Ltd. with a shareholding of approximately 50.18%.

Share performance of VEE

VEE shares closed 3.75% higher at AUD 1.52 apiece on 17 October 2024. In the past nine months, the share price has risen by 45.45%, while on a YTD basis, the share price has increased by 38.18%.

52-week high of VEE is AUD 2.02, recorded on 29 April 2024, while 52-week low is AUD 0.56, recorded on 10 November 2023.

VEE 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 17 October 2024. The reference data in this report has been partly sourced from EODHD/Others.