Aztech Global - UOB Kay Hian 2023-08-31: Touring Aztech’s Manufacturing Facility In Dongguan

• We visited Aztech’s manufacturing facility in Dongguan and R&D centre in Shenzhen to better understand its manufacturing flow and R&D capabilities.
• In the plant, we observed high-volume production and operational efficiencies. Aztech’s ability to leverage on its R&D expertise and provision of one-stop design and manufacturing services allows it to attract and build long-lasting relationships with its clients.
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Highly efficient operations in Dongguan facility.

• Aztech Global (SGX:8AZ)’s largest manufacturing facility in Dongguan, China is strategically located near Guangzhou and Shenzhen, and enjoys an extensive expressway network that connects it to other cities in the Greater Bay Area.
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• As a one-stop design and manufacturing service provider, achieving operational efficiency is key to delivering high quality products to its customers. This was seen in its electronics manufacturing flow, where the system testing of printed circuit board assembly (PCBA) is automated. On top of this, facility operations are run 24/7 by a long-serving team, maximising both output and efficiency.
• From our understanding, many factories in Dongguan were grappled with prolonged shutdowns and leaves of absence during the COVID-19 pandemic, leading to low utilisation rates or worse, closures. The fact that Aztech has successfully weathered the crisis proves its strong manufacturing capabilities and steady orderbook.

Working closely with customers for smooth production.

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John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2023-08-31 SGinvestors.io

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