- Aztech’s 2024 earnings of S$71m (-30% y-o-y) missed our expectations by 2%. Amid rising geopolitical uncertainties, Aztech is facing some demand volatility from customers.
2024 earnings slightly below expectations.
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- The impact of lower revenue and higher depreciation was partly offset by higher interest income, net fair value gain on foreign exchange contracts and lower tax expense with a one-time deferred tax provision of S$7m in the prior year.
No orderbook figures were provided for the first time.
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- To recap, the last orderbook figure given was S$142m as of 1 Oct 24. Since Aztech has booked in S$81m revenue for 4Q24, the orderbook brought forward from last year is roughly S$61m, excluding new order wins in 4Q24 and 1Q25.
- Special and final dividend totalling 10 cents per share proposed, comprising a final ordinary dividend of 3 cents per share totalling S$23m and a special dividend of 7 cents per share totalling S$54m. Including the interim dividend of 5 cents per share, the total ordinary dividend declared for the year is 8 cents per share (2023: 8 cents). The proposed final ordinary and special dividends lift the total Aztech's dividends declared for 2024 to 15 cents per share, an increase of 88% y-o-y which translates to a payout ratio of 164%.
Expect demand volatility.
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