Aztech Global - RHB Invest 2024-10-08: Enhancing Production Capabilities To Drive Growth

• Aztech's share price is trading at an attractive a 7.6x FY23 P/E, and offers a ~8% yield.

Ridingon the rapid growth of the IoT trend.

• Aztech Global (SGX:8AZ) offers exposure to the growing IoT segment, which includes machine-based intelligence, in-built monitoring and connectivity to consumer and commercial devices – areas that are growing rapidly due to the increasing number of active connected endpoints.

Re-visit to the Pasir Gudang plant.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -
• 30 assembly and test lines,
• 1 new product introduction (NPI) line,
• 5 manual insertion lines,
• 16 plastic injection lines and
• 5 packaging lines.

Utilisation is healthy, with 12 of 16 SMT lines currently in use during our recent visit. More automation and productivity enhancement have also gotten underway with digital production planning and monitoring systems now installed at the Pasir Gudang plant, eliminating manual tracking of production plans.

Currently, as many as 9 lines are dedicated to producing monitoring products for its key customer. Production yield is high, at over 97%. Aztech is also automating some of its manpower processes in the production line for some future headcount savings.

Positive growth outlook for IoT.

• Read more at SGinvestors.io.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-10-08 SGinvestors.io

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