Aztech Global has recorded a 48.6% y-o-y increase in its net profit of $30.9 million for the 3QFY2023 ended Sept 30. The figure marks a record quarterly performance for the group. For the 9MFY2023, the group’s net profit stands at $73.8 million, 15.9% higher y-o-y.
The group’s revenue for the 3QFY2023 rose by 16.9% y-o-y to $283.4 million due to sales of internet of things (IoT) devices and data-communication products.
In its Oct 16 release, the group attributed its “strong” 3QFY2023 performance to the double-digit growth in revenue, greater economies of scale, higher interest income and net fair value gain on foreign exchange contracts.
For the 9MFY2023, Aztech recorded a 15.9% improvement in net profit of $73.8 million. Its revenue grew by 10.7% y-o-y to $672.0 million. The group’s earnings per share (EPS) for the same period stood at 9.56 cents.
As at Sept 30, the group’s net cash balance stood at $215.4 million. This is inclusive of $40.1 million of short-term investments after netting off bank borrowing and lease liabilities of $20.6 million.
Aztech generated free cash flow of $26.6 million for 9MFY2023. Its net asset value per share increased from 37.0 cents as at Dec 31, 2022 to 41.0 cents as at Sept 30, 2023.
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As at Oct 16, the group’s order book stood at $322.7 million. The orders secured were for IoT solutions across varied market segments including consumer & lifestyle, security, communication, automotive, healthtech, tracking and point of sales.
The majority of these orders is scheduled for completion in FY2023, as the order lead time has normalised from nine to 12 months during the pandemic to two to three months post pandemic, says Aztech.
In August, the group launched a new line of vision technology products under its “Kyla” brand. Two products have been made available first in Singapore, namely Power-Over-Ethernet Internet Protocol (IP) CCTV and Digital Microscope. These will expand to the international market by end of the year.
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The group is targeting the local pre-school educational segment with its IP CCTV, and intends to drive its new line of vision technology products to gain traction with the release of its full product range.
Meanwhile, the group says that its 300,000 square foot Pasir Gudang facility commenced production in 3Q2023 and is currently equipped with eight surface mount technology production lines, two wave soldering lines, 18 product assembly and test lines as well as four packaging lines. Its total production requirements are fulfilled by the facilities in Malaysia and China.
Aztech Global’s Chairman and CEO Michael Mun says: “We have delivered a strong set of 9MFY2023 results albeit a very challenging landscape. We remain focused on sharpening our manufacturing expertise and expanding our offerings in the IoT industry.”
Shares in Aztech closed 1 cent lower, or 1.16% down at 86 cents on Oct 16.
