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.
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Superb 3Q23, has S$323m orders on hand
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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 an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
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