Aztech Global - Maybank Research 2023-02-20: Positive Outlook Despite Speed Bump; Upgrade To BUY

• Aztech reported a dismal FY22, mainly due to a FX contract loss of S$56.6m which caused net profit after tax (NPAT) to drop 9.7% y-o-y to S$67.2m, way below our and consensus estimates.
• On the bright side, Aztech's core business remains strong with its main customer (<80% of orderbook) expected to place 15- 20% more orders in FY23E as it continues to benefit from the diversification trend away from China. As a result, we think the worst is over and raise our FY23E and 24E NPAT forecast for Aztech by 10.4% and 12.4% due to stronger orders despite the current macro environment.

All FX losses accounted for in FY22

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Orders still strong, especially from key customers

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Above is the excerpt from report by Maybank Research.
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