Tech Manufacturing Stocks 1Q23 Earnings Preview - CGS-CIMB Research 2023-04-18: Aztech Could Be The Best Performer

• In the upcoming 1Q23F business updates, we expect mostly weak y-o-y revenue growth to revenue declines for tech manufacturing stocks under our coverage given
  1. concerns over slower economic growth leading to cautious spending by corporates and consumers,
  2. seasonally weaker 1Q given the Chinese New Year holidays, and
  3. - Read this at SGinvestors.io -
• For net profit, we expect to see y-o-y net profit declines for most of our coverage except for Aztech (SGX:8AZ).
• According to 6 Apr 2023 release by the Semiconductor Industry Association (SIA), global semiconductor industry sales declined 20.7% y-o-y and 4.0% m-o-m to U$39.7bn in Feb 2023. Our Korean research office noted that SEC’s plan to cut its memory production could signal the bottoming of the semiconductor memory market.
• Typically, the Singapore tech manufacturing sector sees a seasonally stronger 2H versus 1H. With low earnings expectations and valuations, the sector could potentially bottom post the 1Q23F business update season, in our view.
• - Read this at SGinvestors.io -
• In the small caps space, 1Q23F could mark the bottom for AEM (SGX:AWX) as the company looks forward to a 2H23F recovery.
• Stay sector NEUTRAL

Aztech Global (SGX:8AZ) – ADD, Target price: S$0.91

• Read more at SGinvestors.io.

William TNG CFA CGS-CIMB Research | Izabella TAN CGS-CIMB Research | https://www.cgs-cimb.com 2023-04-18 SGinvestors.io

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