- Aztech announced solid 3Q23 results, with revenue and PATMI up 16.9% y-o-y to S$283.4m and +48.6% y-o-y to S$30.9m, above our and consensus estimates.
- Going forward, the ramping up of its Pasir Gudang plant is likely to improve its operating margins and orders from its key customer should continue to grow. As a result, we raise our FY24/25 PATMI forecasts for Aztech by 6.2% and 5.1%, which increases our target price for Aztech from S$0.93 to S$1.08, based on 8x FY24E P/E.
- - Read this at SGinvestors.io -
Superb 3Q23, has S$323m orders on hand
- - Read this at SGinvestors.io -
- As at 16 Oct 2023, Aztech has an order book of S$322.7m. New contracts secured were for IoT solutions across various market segments, including consumer & lifestyle, security, communication, automotive, healthtech, tracking and point of sales. The majority (~80-90%) of the order book secured is scheduled for completion in FY23.
- Management also guided that margins should be sustainable in 4Q23.
New plant should help lift margins in FY24E
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-10-31
Read also Maybank's most recent report:
2024-04-25 Aztech Global - 1Q24 Hiccup, But Prospects Still Positive.
Previous report by Maybank:
2024-02-23 Aztech Global - Still Positive FY24 Prospects.
Price targets by 2 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
