- Aztech FY24 revenue and NPAT dropped 31% and 30% y-o-y to S$621.6m and S$70.5m, respectively, in line with our forecasts. It added 7 new customers in FY24 with commercial production expected in FY25 which will help to negate declining orders from its key customer.
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Dividends + special dividends = S$0.15/share.
- Management declared an ordinary dividend of S$0.08 per share for FY24 and a special dividend of S$0.07 per share to return excess cash to shareholders. This represents a pay-out ratio of 164% due to its strong cash generation and S$311.3m of cash. See Aztech's dividend dates.
- We expect dividends to likely decline going forward but to still offer an attractive yield of 9.8% for FY25E.
Diversifying away from key customers.
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- Five new products also commenced commercial production at the end of 4Q24. As a result, we believe they are in a transition phase to grow its customer and product base.
Upgrade to BUY.
- Read more at SGinvestors.io.
