- Aztech (SGX:8AZ)'s 1Q25 net profit of S$1.5m (-91% y-o-y) is significantly below expectations, forming only 3% of our full-year estimate.
1Q25 earnings significantly below expectations.
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- Aztech generated net cash of S$18.6m from its operating activities as it continued with its disciplined cost and tight working capital management and delivered free cash flow of S$18.3m on prudent capital expenditure. As of 1Q25, Aztech’s net cash position was healthy at S$316m (S$0.40/share), while its net asset value stood at S$0.44/share.
Challenging outlook and strategy to navigate the tough environment.
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- maintaining a diversified and extensive network of suppliers to mitigate tariff-related risks;
- leveraging on its flexibility to expand its manufacturing capacities in both Malaysia and China;
- adopting a disciplined approach to costs, cash and capital management to optimise financial strength; and
- tightening its foreign exchange risk management policy to manage and monitor any possible exposure.
- With the above strategies, Aztech will be looking to tap on opportunities that might arise from the current challenging situation.
Leveraging Malaysia facility to expand customer base.
- Read more at SGinvestors.io.
