10 Sep 2026
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The Australian share market posted a modest gain in August, with the S&P/ASX All Ords Accumulation Index rising 1.9%. This was heavily led by resources gaining 11.3% while the large industrials dropped 2.7% – a theme that has continued for the past year with a major difference in the performance of the two sides of the market.
Over the past 12 months there has been a divergence of almost 50% between ASX200 resources and industrials.
At Cyan we welcomed the significant rotation away from the larger banks and other large caps into healthcare and some of the more profitable small-cap growth stocks with the S&P/ASX Small Ordinaries Accumulation Index rising 5.2%.
Partly as a result of this, and despite the focus of the Cyan C3G Fund on smaller industrials, the Cyan C3G Fund enjoyed an excellent month rising 10.5% – the details of which we will discuss below.
On the interest rate front, a hotter‑than‑expected July CPI number up 3.5% revived expectations of a possible RBA rate hike at the end of September and saw 3year bond rise to recent highs.
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Month in Review
August was reporting season and it was a welcome change to see investors focussed on fundamental company performance rather than the large macro events that have been influencing sentiment and subsequent trading activity. As such, the portfolio performed strongly.
Performance was led by the ongoing run in Janus Electric (JNS +52%) which garnered further investor interest after winning two major contracts in the US totalling A$55m (a $10m order and a $45m order) to convert more than 100 trucks from diesel to electricity and provide the associated battery packs.
In our July report last month we wrote: “After the rise in the month and the capital raise, Janus is still capped at just $50m. We consider this a small company with a big future.”
Of course we are conscious of having to manage our exposure and have been trimming our position into the strength but the company remains a core Fund holding and we expect further deals and contracts to be announced at the company expands its exposure into both new sectors and geographies.
After a number of weaker months in share price performance, smart traffic camera operator and manufacturer Acusensus (ACE +29%) bounced back strongly after releasing an impressive set of FY26 results with record revenue and a beat at the top end of its EBITDA guidance. The company has an increasing global deployment of traffic safety cameras which are providing the business with a stable and profitable recurring revenue stream. With ongoing new contract negotiations, a rollout of their new roadworker safety product, Foresite and $26m in net cash, there is plenty more upside for investors to look forward to.
While Alcidion (ALC +10%) released a strong 4th quarter FY26 result in July, its full FY26 results renewed investor interest in the hospital software provider. Records fell across the board with a healthy 27% growth in revenue upstaged by a record operation EBITDA result of $6.2m, ahead of prior expectations. Pleasingly the stock has continued to trade higher post the result showing ongoing confidence in the company and growing interest in profitable smaller Australian listed companies.
Another strong performer was advanced 3D metal printing manufacturer AML3D (AL3 +37%) which bounced strongly off recent lows after reporting FY26 revenue up 70% to $12.5m and a net cash position of almost $27m. AL3 is providing its systems to the US Navy (with a LOI of 100 systems) along with a new testing contract with BAE systems.
AL3 has a market cap of just $82m which looks incredibly favourable when compared to other ASX defence plays like Droneshield (DRO $1.6bn), Elsight (ELS $1.0bn) and Electro Optic Systems (EOS $2.1bn) and those in the additive manufacturing space like Titomic (TTT $210m), Metal Powder Works (MPW $190m) and Amaero (3DA $252m).
There were several other positions that also contributed well to the August result including Raiz Invest (RZI +13.8%), BLS Pharmaceuticals (BLS +30.9%) and Beforepay Group (B4P +4.9%).
Media
There were a number of media pieces done during the month as listed on our website and Linkedin.
Outlook
The outlook for smaller companies is increasingly encouraging despite the expectations of an Australian rate rise.
After a sustained period of relative underperformance, many of the higher quality small and emerging businesses still trade at meaningful discounts to larger peers despite possessing stronger growth runways. The past reporting season has reinforced this view amongst investors with what appears to be sustained buying post solid results. We have seen this across multiple Fund holdings as detailed above.
The IPO pipeline is flowing again with the Fund having subscribed to the upcoming IPO of drone manufacturer Innovaero and a healthy pipeline of placements and other corporate opportunities. In addition, value is being sporadically unlocked across the sector through ongoing takeover activity.
The Cyan C3G Fund has been actively managing its diversification during some recent large price moves and remains appropriately positioned in profitable well-funded companies across sectors including finance, health, transport, education and defence with ongoing avenues for growth and significant further appreciation.
Please stay in touch with our intra-month commentary via Linkedin or feel free to contact us at any time.
Dean Fergie and Graeme Carson
Cyan Investment Management
AFSL No. 453209
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