Sergey Ryzhov@shutterstock

Highlights

  • Nanosonics Limited delivers innovative solutions focused on preventing the transmission of potentially life-altering infections
  • NAN shares have rallied nearly 37% in the last one year, outperforming the ASX benchmark S&P/ASX200 index, which has risen 7.41% in the same time frame
  • The outperformance of NAN shares have probably been supported by its earnings growth and guidance for FY23

Shares of medical device company Nanosonics Limited (ASX: NAN) have rallied nearly 37% in the last one year, outperforming the ASX benchmark S&P/ASX200 index, which has risen 7.41% in the same time frame. The outperformance of NAN shares has probably been supported by its earnings growth and guidance for FY23.

For the uninitiated, Nanosonics Limited delivers innovative solutions to prevent the transmission of potentially life-altering infections. With global operations, the ASX-listed infection prevention company manufactures and distributes ultrasound probe disinfectors and associated consumables and accessories.

For 1HFY23 ending 31 December 2022, the company reported a revenue of AUD 81.6 million, which was 34.7%higher than the revenue of AUD 60.6 million reported in 1HFY22. Meanwhile, its net profit surged by 166.7% annually to AUD 10.4 million in 1HFY23.

As per the company, its performance in the first half was supported by its transition to a more direct sales model in North America. Factors such as consumable volumes growth, increased global installed base, and favourable pricing across capital and consumables led to positive outcomes in the reported period. Here's how its earnings have grown over the last two years:

NAN FY23 Outlook

The company has revised its guidance for FY23. NAN expects to register total revenue growth of 36-41% (previously 20-25%) and gross profit margin of 77-79% (previously 75-76%). Also, the company plans to launch its new endoscope product platform Nanosonic CORIS in Australia and/or Europe by the end of 2023.

Meanwhile, the company continuously invests in R&D programs supporting the expansion of its product portfolio, sustaining mature market growth, and geographical expansion to new markets.

Top 10 Shareholders

The top 10 shareholders of the company together hold around 41.99% stake. Yarra Funds Management Limited and Stang (Maurie) hold the maximum stake in the company at 6.30% and 6.28%, respectively.

NAN Share Price Performance

NAN shares closed 0.249% higher at AUD 4.680 on 28 June 2023. The stock price has gone down by nearly 9.43% in the last one month, and over the last six months, stock prices went up by around 8.22%. The stock has a 52-week low and 52-week high of AUD 3.280 and AUD 5.800, respectively, and is trading slightly above the mid-range of the 52-week-high-low levels.

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

Note 2: The reference date for all price data, currency, is 28 June 2023. The reference data in this report has been partly sourced from REFINITIV.