- Aztech's announced solid FY23 results, with revenue up 9.3% y-o-y to S$896.3m and PATMI +48.9% y-o-y to S$100m, above our and consensus’ estimates.
- Going forward, 10-15% more orders are expected from its key customer and it should also enjoy more orders from existing and new customers. Key customer concentration has also reduced to 65-75% of revenue instead of >80%.
- - Read this at SGinvestors.io -
Key customer still signalling positive orders y-o-y
- - Read this at SGinvestors.io -
- Currently, utilisation across its factories is about 50-55% and we expect utilisation to surge to 70-80% due to its pipeline of projects ahead.
- Orderbook is at S$333.9m, lower than expected due to shorter lead time which has reduced to 2-3 months from 9-12 during the pandemic but will not be representative of its positive outlook. Margins should either remain solid or improve due to higher operating leverage.
Dividend increased 78% y-o-y to 8 cents
- Read more at SGinvestors.io.
