Company Interview / Oliver's small cap 'haves' and 'have-nots'

Key points:

Small-cap resources split between infrastructure “haves” and downgraded “have-nots”Korvest Limited (ASX:KOV) seen as a quality, income-paying infrastructure compounderAquarian Resources (ASX:AQN) viewed as a high-conviction, vertically integrated mining services growth story

Oliver Porter from Euroz Hartleys outlines a notably buoyant outlook for Australian small caps, particularly resource-weighted names leveraged to electrification and infrastructure. Porter observes a clear split between “haves” and “have-nots”: companies tied to data centres, electrification and gold trade on near cycle-high multiples, while recent downgraders remain stuck until they demonstrate improved numbers. He regards the current market as short on obvious value, yet still rich with selective opportunities.

Porter highlights Korvest Limited (ASX:KOV) as a standout small-cap infrastructure play. He describes Korvest as a mature earnings compounder exposed to long-dated national infrastructure projects, including tunnels, commercial buildings and data centres, via its cable and pipe support systems. With about 45% domestic market share, net cash, an 80% expansion of manufacturing capacity nearing completion and a fully franked yield above 4%, Porter judges the stock’s mid-teens PE multiple as attractive given its low-risk, steady growth profile.

Porter names Aquirian Limited (ASX:AQN) as his highest-conviction idea. He points to its patented Collar Keeper drill-and-blast technology and vertically integrated emulsion explosives plant, both leveraged to deeper, wetter mines. A three-year, $48 million contract with Brightstar, under a broader five-year framework, underpins what Porter views as significant contracted revenue and strong earnings growth potential.