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Why this ASX technology share is up 160% in 2019

James Mickleboro
share price higher

The Codan Limited (ASX: CDA) share price has zoomed to a record high on Wednesday morning.

The technology company’s shares jumped a sizeable 9% to $7.43 after upgrading its guidance for the first half of FY 2020.

When Codan’s shares reached this level, it meant they had gained an impressive 160% since the start of the year.

What did Codan announce?

This morning Codan revealed that it has continued to perform strongly since its annual general meeting in October.

At that meeting Codan advised that it had made an excellent start to the new financial year.

Pleasingly, these positive business conditions have continued during November and December. This has led to Metal Detection and Communications sales exceeding its expectations. The latter includes the delivery of a major $15 million Kenyan contract.

In light of this, the Codan board now expects its underlying net profit after tax for the six months to December 31 to be in the order of $30 million. This compares to its previous guidance for an underlying net profit after tax of around $26 million for the first half.

However, the company has warned that large projects like the Tactical Communications project in Kenya may not be repeated in the second half. Furthermore, given the strength of its metal detector sales in the first half, it believes it is too early to determine if its traditional second half weighting of sales will occur this year.

Also rising strongly in the tech sector today has been the Electro Optic Systems Hldg Ltd (ASX: EOS) share price.

The Aerospace and Defence Markets-focused technology company’s shares are up 5.5% today after revealing a contract with the Department of Defence. This brings Electro Optic Systems’ year to date gain to an even more impressive 200%.

The post Why this ASX technology share is up 160% in 2019 appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019