Aztech Global 8AZ has recorded an 18.7% y-o-y increase in net profit to $15.9 million for the 1QFY2024 ended March 31.
The earnings growth for the quarter came about despite a 20.4% y-o-y decrease in 1QFY2024 revenue to $128.6 million as heavy snowstorms in China forced customer orders to be rescheduled.
The y-o-y increase in net profit was mainly attributable to net fair value gain on foreign exchange of $2.3 million, compared to the loss of $3.1 million recorded in 1QFY2023, and a write-back of provision for losses in trade receivables amounting to $1.2 million.
The company’s earnings per share grew 18.5% y-o-y to 2.05 cents for 1QFY2024.
As at March 31, the group’s net cash balance stood at $302 million, inclusive of $50.4 million in short-term investments.
Aztech generated a strong free cash flow of $49.6 million for 1QFY2024. Its net asset value per share increased from 45.0 cents as at Dec 31, 2023 to 47.0 cents as at March 31.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
As at April 23, the group’s order book stood at $456 million. New customers were secured for sound and light Internet of Things (IoT) products and visual IoT displays.
The company says it is cautiously optimistic about its business prospects for FY2024. In addition to secured orders for production in the second quarter, Aztech will be focusing on fulfilling the orders deferred in 1QFY2024.
It is looking to grow its IoT and electronics manufacturing service business and line of Vision Technology products by strengthening its manufacturing capabilities and using innovative technology like artificial intelligence (AI).
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
CEO Michael Mun says: “We are pleased to have delivered a strong 1QFY2024 profit growth and sound net cash position. We believe our strong financials, coupled with the group’s efficient R&D, lean manufacturing capabilities and greater adoption of AI technology, will position us well to capture new opportunities.”
Shares in Aztech closed 2.5 cents higher or 2.75% down at 93.5 cents on April 23.
