Aztech Global - Maybank Research 2024-02-23: Still Positive FY24 Prospects

• 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%.
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Key customer still signalling positive orders y-o-y

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• 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.

Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-23 SGinvestors.io

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