Aztech (SGX:8AZ) reported 1QFY26 revenue of S$64.7mil, expanding 54.0% y-o-y on stronger order fulfilment across IoT devices and data-communication products from both existing and newly onboarded customers.
Revenue growth underpinned by stronger utilisation and disciplined cost execution.
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Earnings were further supported by a one-off S$3.1mil gain from the disposal of its Dongguan property, partially offset by lower interest income and unrealised foreign exchange losses. Profitability improvement was primarily driven by higher factory utilisation, better absorption of fixed overheads and sustained cost discipline as production volumes scaled.
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Overall, 1QFY26 revenue and net profit were broadly in line with expectations, accounting for 14% and 9% of our FY26F forecasts respectively, compared with 10% and 4% in 1QFY25 and broadly consistent with the historical run-rate of approximately 10-20% for both revenue and earnings contribution.
Pipeline conversion and sustained cost discipline expected to drive gradual earnings growth ahead.
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