- Aztech (SGX:8AZ) reported a strong set of 3Q23 results, despite challenging environment, with a 16.9% y-o-y (+24.9% q-o-q) increase in revenue to S$283.4m, mainly driven by sales of IoT devices and data communication products, which accounted for 98.2% of total sales. Its key customer accounts for about 85% of the total sales.
Stable margins despite one-off tax provision.
- - Read this at SGinvestors.io -
- The net profit margin of 10.9% remains healthy, despite a one-time deferred tax provision of S$5.5m relating to retained earnings from an overseas subsidiary, partly offset by a forex gain of about S$0.8m. Excluding these two items, the net margin would be 12.6%, comparable to the 13.0% in 2Q23.
3Q23/9M23 results above expectations.
- - Read this at SGinvestors.io -
- For the 9-month period, Aztech's revenue gained 10.7% y-o-y while net profit was up 15.9%, accounting for 75% and 85% of our estimates for FY23F, respectively, above expectations. The net margin of 11% is a tad better than the 10.5% recorded during the corresponding 9-month period in 2022.
New plant to service existing customers and target new ones looking to expand out of China.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-10-17
Previous report by DBS:
2023-05-05 Aztech Global - Orderbook Healthy Despite Weaker Margins.
Price targets by 3 other brokers at Aztech Target Prices.
Listing of research reports at Aztech Analyst Reports.
Relevant links:
Aztech Share Price History,
Aztech Announcements,
Aztech Dividends & Corporate Actions,
Aztech News Articles
