Two Small Cap ASX Stocks with Long Term Horizon

With good business models, a few potential growth companies are catching the eyes of investors. Two such growth stocks from ASX listed companies are

NoviqTech Limited (ASX: NVQ)

NoviqTech Limited (ASX: NVQ) continues to solidify its leadership at the intersection of blockchain technology and sustainability with a series of strategic developments and investments. Most notably, the company, coming up as one of the best growth stocks, has expanded its partnership with Hedera, leveraging its revolutionary Hashgraph consensus mechanism. With enterprise-grade security, quantum resistance, high transaction throughput, and exceptional energy efficiency, Hedera offers a robust platform for scalable blockchain applications. NoviqTech now holds ~1.8 million Hedera tokens, aligning with its strategy to develop innovative solutions addressing ESG compliance, supply-chain traceability, and real-time reporting. A key component of this initiative is the upcoming beta launch of NoviqAI, slated for January. This platform will integrate advanced capabilities like carbon tokenization, guarantee of origin (GO) systems, and digital twin technology to enable real-time, auditable solutions for supply chain management and sustainability tracking. By bridging to platforms like Carbon Central, NoviqAI is poised to unlock transformative potential for industries looking to streamline operations and enhance environmental accountability.

In its latest quarterly report, NoviqTech disclosed substantial progress, including a strategic site visit to Global Resource Recovery’s (GRR) Darwin facility. This engagement finalized the integration of GRR’s operations into Carbon Central’s digital twin platform. The integration will deliver advanced analytics, real-time monitoring, and certification of recycled material origins, facilitating GRR’s participation in carbon credit trading. This development underscores Carbon Central's capacity to drive revenue generation and sustainability in resource recovery. The company has also partnered with Clean Hydrogen Technologies (CHT) to deploy its GO system for Turquoise Hydrogen production. This collaboration reinforces NoviqTech’s alignment with emerging green energy trends, enhancing transparency and accountability in the hydrogen economy. Additionally, the company is exploring opportunities to extend Carbon Central’s capabilities into the semiconductor sector, offering innovative solutions to meet the industry’s growing demand for efficiency and sustainability.

NoviqTech recently secured $1.05 million in a strategic placement to accelerate its blockchain-powered initiatives. It also established a $1.4 million loan facility with Copeak Pty Ltd, ensuring robust liquidity to support growth. These funding arrangements reflect strong investor confidence in NoviqTech’s trajectory and its ability to capitalize on opportunities in blockchain and ESG markets. Looking ahead, NoviqTech’s advancements in digital solutions for carbon markets and its expanding partnerships position the company to deliver meaningful shareholder value. Its commitment to sustainability and innovation aligns with global trends, enhancing its appeal as an investment in both blockchain technology and environmental responsibility.

Yojee Limited (ASX: YOJ)

Yojee Limited (ASX: YOJ) reported robust operational performance in Q1 FY2025, underpinned by a notable 24.88% increase in transactional volumes over two quarters, from 134,379 in Q3 FY2023 to 167,769 in Q1 FY2025. This reflects the successful execution of its sales and marketing strategy, as well as the growing adoption of its platform by enterprise customers. Monthly average transaction volumes continued to rise, supported by new enterprise contracts expected to come online in the near term. The company achieved key milestones in its expansion strategy, particularly in Indonesia, where its Transport Management System (TMS) was successfully deployed at PT APP Purinusa Ekapersada’s (APP) first mill and subsequently expanded to two additional sites during the quarter. Currently operational at three of the six contracted APP sites, the TMS is fully integrated with APP’s SAP ERP system, enabling seamless data exchange and driving efficiency. This deployment has contributed to increased transaction volumes and expanded Yojee’s carrier network, strengthening its market presence in the region.

Financially, Yojee reported AU$268k in cash receipts for Q1 FY2025, a 139% sequential increase due to timing factors. However, trade revenue declined 10.5% quarter-on-quarter and 54% year-on-year to AU$180k. Net operating cash outflows improved by 8% quarter-on-quarter to AU$718k, reflecting disciplined cost management alongside investments in growth initiatives. With a cash balance of AU$3.52 million and no debt as of September 30, 2024, Yojee is well-positioned to fund its growth strategy. 

The partnership with APP remains a cornerstone, with the TMS rollout at three additional sites scheduled for H2 FY2025, enhancing operational visibility and control. Concurrently, Yojee is advancing its Freight Management System (FMS), targeting a launch in H1 2025 to complement its TMS offering. Strategic investments in sales, marketing, and customer success, alongside a streamlined commercial model, are bolstering its sales pipeline, driving customer acquisition, and accelerating enterprise adoption. Yojee’s ability to deliver scalable solutions and drive supply chain efficiencies positions it strongly for sustained growth.

Source: Company’s Report