- Aztech’s 3Q23 record-high earnings of S$30.9m (+48.6% y-o-y/+0.5% q-o-q) beat our forecast, with 9M23 forming 82% of our full-year estimate. IoT devices continued to be a key growth driver, driving an 11.1% y-o-y revenue growth.
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- Maintain BUY with an 11% higher target price of S$1.11 for Aztech after raising our EPS forecasts.
3Q23 earnings above expectations.
- Aztech Global (SGX:8AZ)’s 3Q23 net profit of S$30.9m (+48.6% y-o-y/+0.5% q-o-q) is a record high and exceeded our forecast. 9M23 net profit of S$73.8m (+15.9% y-o-y) accounts for 82% of our full-year estimate.
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- Aztech also enjoyed greater economies of scale, higher interest income and lower net fair value loss on its foreign exchange contracts.
- Despite higher income tax expenses incurred due to a S$5.5m one-time deferred tax provision from an overseas subsidiary’s retained earnings, Aztech recorded an improvement in net margin to 10.9% (+2.3ppt y-o-y).
Orderbook remains resilient with normalised lead time.
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