Mainboard-listed electronics manufacturer Aztech Global 8AZ has posted net profit of $13.7 million for 3QFY2024 ended Sept 30, down 55.7% y-o-y from the same period last year.
For the same period, basic and diluted earnings per share fell by 55.5% y-o-y to 1.78 cents.
For 9MFY2024, the group’s net profit declined by 18.2% y-o-y to $60.4 million. This came on the back of lower revenue, higher depreciation and net foreign exchange loss, which was partly offset by higher interest income and lower tax expense.
According to the group, tax expense was lowered due to a one-time deferred tax provision of $5.5m in the prior year.
Similarly, the group’s revenue fell by 41.2% y-o-y to $166.7 million in 3QFY2024, while revenue for 9MFY2024 declined 19.7% to $539.9 million due to lower order volume from customers.
Accordingly, the group’s gross profit for 3QFY2024 stood at $15,7 million, 64.1% lower y-o-y. Gross profit margin for the same period stood at 9.4%.
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That said, the group says that Aztech Global has continued to “generate strong net cash from its operating activities with improved working capital”. For 9MFY2024, net cash generated from operating activities increased by 83.1% y-o-y to $89.9 million, while free cash flow stood at $86.7 million.
As at Sept 30, the group’s net cash position saw a 25.2% y-o-y increase to $269.8 million. Net asset value (NAV) per share for the same period stood at 42 cents.
During the period ended Sept 30, the group also made total dividend payments of $77.2million relating to the FY2023 final dividend and FY2024 interim dividend.
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As at Oct 1, the group has secured an order book amounting to $142 million. The majority of the order book secured is scheduled for completion in FY2024.
The group adds that with a lowered order book, Aztech Global expects a “slower” 4QFY2024.
Moving forward, the group says that its focus will go towards “enhancing its design and manufacturing capabilities”. It aims to increase its customer base which includes merger and acquisition (M&A) opportunities.
Micheal Mun, executive chairman and CEO of Aztech Global, says: “We remain committed to growing our business by strengthening our relationships with current customers and continuing to invest our resources to increase and diversify our customer base.”
Shares in Aztech Global closed 1 cent higher, or up 0.98%, at $1.03 on Oct 29.
