Azzet reports on three ASX stocks with notable trading updates today
Reece dives on housing slump-driven earnings downgrade
Shares in Reece (ASX: REH) were down around 10% at the open after the plumbing parts company told the market to expect a material drop in earnings due to some tough macroeconomic headwinds and intensifying competition.
FY25 earnings are expected to come in between $548 million and $558 million, a far cry from $681 million the previous year.
The improvement in trading conditions the ASX100 industrial stock had hoped for in the second half have not materialised and CEO and chairman Peter Wilson noted that volume settings in Australia and NZ remain soft.
“… recent interest rate cuts have not yet translated to improved housing activity. This will take time to flow through.”
Wilson also reminded the market today that high exposure to the “residential new construction” market was also taking its toll on the group’s U.S. business where housing units under construction remain down year-on-year.
“Mortgage rates remain high, and housing affordability continues to weigh on the US residential market,” he said.
“We have seen increased competition across all segments of our US business from new market entrants and the slowdown in RNC, which has impacted profitability for the year.”
However, given that the group is no stranger to these cycles, Wilson remains confident in its long-term approach.
Reece also announced today that former National Australia Bank (ASX: NAB) Ross McEwan would retire from the board.
“In line with my recent decision to step down from the QinetiQ board, I will also be stepping down from the Reece board to devote my time and attention to my role as chairman of BHP,” McEwan said.
The group will release its FY25 financial results for the 12-month period ended 30 June 2025 on Monday 25 August 2025.
Since 21 February this year the stock’s share price has fallen around 30% to $15.48 today.
However, the recent share price stumble – clearly impacted by tariff measures – overlooks the stock’s average total return of around 10.2% annually over the last decade.
But in a recent client note, Macquarie noted that elevated mortgage rates and declining consumer confidence continue to weigh on the U.S. construction market.
“ Bidding activity and backlogs improved but remain in contraction (<50pts) in a typically stronger period seasonally. This seems to reflect the cautious spring selling season,” the broker said.
The broker has reaffirmed its neutral rating and $16.40 price target.
Reece has a market cap of around $10 billion; the share price is down 39% in one year and down 30% year to date.
The stock’s shares appear to be in a long-term bearish trend confirmed by a falling 200-day moving average.
Consensus is Hold.
Larvotto Resources trades higher after securing key approval at Hillgrove
Shares in Larvotto Resources (ASX: LRV) were up around 6% at the open after the ASX smallcap miner secured final approval from the NSW Department of Planning, Housing and Infrastructure for Modification 6 at its Hillgrove Antimony-Gold Mine.
The state’s green light means Larvotto can now proceed with final-stage financing and development activities ahead of a planned 2026 production restart.
With formal approval now secured, Larvotto managing director Ron Heeks told the market that the miner can immediately finalise financing and move towards a 2025 restart of operations - demonstrating Hillgrove’s true potential as a globally strategic antimony and gold asset.
Heeks also described today’s announced approval as a validation of the miner’s development strategy and a catalyst for unlocking Hillgrove’s value as a globally strategic antimony and gold asset.
The Mod-6 approval provides for essential development activities, including infrastructure upgrades and access to underground mining.
The permit also enables mining and processing operations, including dry-stacked tailings and expanded processing capacity.
In March 2024, Larvotto Resources signed an $12.62 million non-binding term sheet with Wogen Resources and Xcelsior Capital for the progress of the Hillgrove project.
Larvotto is targeting a yearly output at Hillgrove of 40,566 ounces of gold and 4878 tonnes of antimony from the mine.
Construction of the upgraded 525,000 tonnes per annum processing plant - up from 250,000tpa - is expected to begin later this year.
Larvotto’s portfolio of mineral projects also include the Mt Isa copper, gold, and cobalt project in Queensland, and the Eyre multi-metals and lithium project in WA.
Larvotto has a market cap of $270 million; the share price is up 555% in one year to $0.655 and is up 32% year to date.
The stock’s shares appear to be in a near-term downtrend confirmed by the relationship between the 5 and 20-day moving averages.
Consensus does not cover this stock.
Sunrise metals soars on promising announcement
Sunrise Energy Metals' (ASX:SRL) shares are up a whopping 26% heading into lunch after announcing promising results from its recent drilling campaign at the Syerston Scandium Project in central New South Wales.
What excited the market today were strong results from a 125-hole drilling campaign at Syerston which aims to leverage one of the largest and highest-grade scandium resources in the world.
Today’s results identified multiple new zones of continuous high-grade scandium mineralisation that will contribute to update the Syerston Mineral Resource Estimate.
This update is crucial for the feasibility study of the Syerston Scandium Project, which targets rapid, low-cost development and production.
The announcement coincides with heightened global efforts to alleviate recent market constraints due to export restrictions on critical minerals from China.
To the uninitiated, scandium is a critical mineral, recognised for its strength, lightweight nature, and heat/corrosion resistance, making it valuable in aerospace, sporting goods, and solid oxide fuel cells.
Given the tight scandium market, Sunrise appears well positioned strategically to meet demand in the advanced alloy and semiconductor sectors.
Highlights from today’s drilling results include intercepts such as 13m at 743ppm and 7m at 884ppm scandium.
The results will feed into an updated Mineral Resource Estimate and a refreshed Feasibility Study, as Sunrise targets a multi-decade mine plan.
Sunrise has a market cap of $125 million; its share price is up 254% in one year and up 382% year to date.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
