Aztech   

Aztech minority shareholders

AZTECH GLOBAL ACHIEVES 33.5% SURGE IN FY2021 EARNINGS
TO RECORD $74.4 MILLION ON RESILIENT 4Q REVENUE GROWTH
  Proposes tax-exempt final dividend of 5 cents per share
https://links.sgx.com/1.0.0/corporate-announcements/YUG16ELXK7LBE5Z8/702961_FY2021%20Results%20Press%20Release.pdf

 

Aztech Global' s current share price is ' opportunity' to enter, says CGS-CIMB

CGS-CIMB Research analyst William Tng has kept " add" on Aztech Global with an unchanged target price of $1.82.

Tng' s target price is based on an unchanged price-to-earnings (P/E) of 15 times FY2022 earnings per share (EPS), which is an average for the Singapore technology sector.

To him, the group' s current price of $1.07 as at Sept 3 is an " opportunity" for investors to accumulate.

The counter' s share price has fallen 16.4% from its initial public offering (IPO) price of $1.28. It is also a 15.7% drop from its closing price of $1.27 since it announced its results for the 1HFY2021 ended June.

" We believe the current Covid-19-led component shortage concerns are priced in," writes Tng in a Sept 3 report.

During the pandemic, the company has so far kept its production output in check despite the high number of cases in Malaysia.

Aztech has been managing the situation by ramping up its production capacity in China to make up for any shortfall in its Malaysian factory.

" Aztech' s performance has so far been in line with our expectations," he adds.

The group has posted revenues of $115.9 million and $133.8 million for the 1QFY2021 and 2QFY2021 respectively.

However, a disruption in its supply chain due to component shortages and logistical constraints could affect its earnings for the 2HFY2021, notes Tng.

" We also believe that in the worst case scenario, Aztech will not lose any orders but see some orders being pushed into 1HFY2022," he says.

To this end, Tng has identified share buybacks as a re-rating factor for the counter.

" Share buybacks could help lend support to its share price and we believe Aztech is aiming to obtain its share buyback mandate via an EGM before end-2021," he writes.

" Downside risks to our call are component shortages and Covid-19 related supply chain disruptions. New customer wins and stronger earnings could re-rate the stock."

Shares in Aztech Global closed 1 cent higher or 0.94% up at $1.08 on Sept 6, or an FY2021 P/B of 2.91 times and a dividend yield of 2.68%.

 

no goodwills... go Google and see how it treats retail investors.

ttworld      ( Date: 14-Aug-2021 08:48) Posted: Why is this counter dropping ar? Profit gd, no bad news. Anyone can share some insights?

 

Why is this counter dropping ar?
Profit gd, no bad news.
Anyone can share some insights?

 

AEM and UMS are up except this counter......

probably accumulation in progress......

DYODD


😂 😂 😂

Playsafe      ( Date: 05-Aug-2021 09:50) Posted: Profits doubled, all analysts have tp above 1.70, but people still selling at 120, about 7 pips below pre- results announcement just because one analyst said their component cost may increase 3% next year??? Give me a break! Costs for companies will keep increasing but they will try to pass the increase on to the customers.

 

Profits doubled, all analysts have tp above 1.70, but people still selling at 120, about 7 pips below pre- results announcement just because one analyst said their component cost may increase 3% next year??? Give me a break! Costs for companies will keep increasing but they will try to pass the increase on to the customers.

 

UOB KH forecasts strong 2Q21 for tech manufacturers, top buys include UMS, Aztech and Innotek

UOB Kay Hian is upbeat on the prospects of the tech manufacturing industry, with a " buy" call on all the companies of this sector under its coverage.

In its July 29 report, the research team from UOB Kay Hian notes that companies servicing the semiconductor and auto industries are clear beneficiaries, given the industry tailwinds.

" The semiconductor industry is riding on a strong uptrend, with significant demand for semiconductor chips arising from 5G-related spending and the growth of data," states the research team.

" Demand has shown resilience despite being impacted by supply chain disruption from global lockdowns related to the COVID-19 pandemic."

Given how they are " are serving the right industries and have better chances of earnings beat" , UOB Kay Hian' s top picks are UMS Holdings, Innotek and Aztech Global, with target prices of $1.92, $1.20 and $1.86 respectively.

" Particularly, the upcoming 2Q2021 results from Aztech, UMS, and Innotek could surprise on the upside as demand for their end-products continue to benefit from resilient demand," writes the team.

Furthermore, unlike other sectors which faced low demand in the pandemic, factories for these tech manufactures have been kept busy in 2QFY2021, " supported by positive and expansionary" policies.

In June 2021, the semiconductor segment grew 28.2% y-o-y, led by demand from cloud services and 5G markets, while output of machinery and systems expanded 28.6% y-o-y on the back of higher output of semiconductor and industrial process equipment.

The strong demand is expected to translate to increased factory utilisation rates, driving positive operating leverage for the tech-related manufacturers.

But they expect competition to stay rational among the suppliers, given the elevated capacity utilisation rates across the semiconductor industry.

For Aztech, UOB KH highlights that the firm' s manufacturing plant in Dongguan was not affected by the recent Covid-19 outbreak, and its Malaysian plant only had " limited" impact from the country' s movement control order. It is also phasing out low margin products to free up more capacity for better-margin products.

Aztech' s customer demand and orderbook remain robust, with the company continuing to see robust orders from its key customers with orders lasting until 2022. In addition, Aztech is working on several new products with its key customer, with production commencing in 3QFY2021.

" Compared with larger competing manufacturers, Aztech has advantages in its ability to provide more dedicated services and work closely with the design team of its key customer," the team notes.

As for UMS, it is enjoying support from the global chip shortage situation brought about by rising consumer demand for electronic products and supply disruption.

UMS' key customer is chip-making equipment producer Applied Materials, which, in its 2QFY2021 earnings on May 21, notes that its customers, for the first time, have provided capital spending guidance for multiple years ahead, which will be a leading indicator for demand sustainability.

" This augments our thesis that the ongoing massive capex spending, and supercycle in the semiconductor industry will bode well for UMS, lifting overall factory utilisation rates and revenue above the $200 million mark for the first time in 2021."

UMS is also poised for an earnings upside surprise, if factory utilisation rates remain elevated throughout the year.

The team reveals, " a sensitivity analysis shows that for every 5% increase in sales from our estimate, the expected rise in net profit will be 7% due to the impact of positive operating leverage."

Last but not least, UOB Kay Hian has a positive outlook on Innotek, given its venture into the EV and parts assembly business, as well as its exposure to the automotive industry in China.

In InnoTek' s recent 2020 annual report, it highlighted that its China' s auto division is experiencing great change, with a clear shift towards electric vehicles (EV). InnoTek' s precision metal components division also serves EV manufacturers.

However, as the industry evolves holistically towards charging stations and infrastructure support, InnoTek says it will seek to deepen its value proposition with existing customers and acquire new customers.

This means moving beyond single-part manufacturing to parts assembly, and the company has secured initial orders of the latter and expects orders to increase as it establishes its foothold within the segment.

Furthermore, the UOB Kay Hian team thinks the company is set to benefit from a strong recovery in China' s auto sales. " China has successfully contained the Covid-19 outbreak, which has led to a surge in passenger vehicle (PV) sales back to pre-Covid-19 levels" , they point out.

Furthermore, China' s Association of Automobile Manufacturers estimates March auto sales at 2.38 million units, up 67% y-o-y and 64% m-o-m, and 1Q2021 PV sales should reach 6.34 million units, up 73% y-o-y.

Besides Innotek, UMS and Aztech, UOB Kay Hian also gave " buy" ratings for Venture Corp, Nanofilm Technologies International and Frencken Group, with target prices of $23.47, $5.51, and $2.13 respectively

 

 

It was reported that there is an 18.1% increase in net profit. Maybe this time they will do better.

hotelgrand      ( Date: 12-Mar-2021 13:22) Posted: Will go below IPO 1.28 now artificialpy supported..go below $1

 

after that the same old story repeats itself again....

 

Will go below IPO 1.28 now artificialpy supported..go below $1

 

IOT , 5G etc.. people are lured by such stuff

eric998      ( Date: 12-Mar-2021 12:51) Posted: NTA less than 26c and still list at more than $1... what is the engine that will justify the high price? anyone can enlighten?  bloodseeker      ( Date: 08-Mar-2021 10:11) Posted: Their action in 2017 only tells investors that they are simply not interested in enhancing the shareholders' value. Instead they are interested in increasing their own wealth...better stay far far away or else they will suck you dry....

 

NTA less than 26c and still list at more than $1... what is the engine that will justify the high price? anyone can enlighten? 

bloodseeker      ( Date: 08-Mar-2021 10:11) Posted: Their action in 2017 only tells investors that they are simply not interested in enhancing the shareholders' value. Instead they are interested in increasing their own wealth...better stay far far away or else they will suck you dry....

 

Aztech Global' s IPO public offer 18.4 times subscribed
THU, MAR 11, 2021 - 6:40 PM

AZTECH Global received applications from retail investors for 18.4 times the number of shares available in the public portion of its initial public offering (IPO), it announced on Thursday.

With 3.5 million shares available to the public for subscription, it received 4,143 valid applications for about 64.42 million shares, with application monies received amounting to some S$82.5 million.

Additionally, the company, which is in the business of the Internet of Things (IOT) and data communication, received indications of interest for about 1.06 billion placement shares, of the 64.62 million available. This results in its placement shares being some 16.4 times subscribed.

Overall, based on the 68.12 million offer shares available for subscription under its IPO, assuming that the over-allotment option is not exercised, the invitation was 16.5 times subscribed.

Michael Mun, executive chairman and chief executive of the company, said: " The subscription and application results are testament to Aztech' s strong investment proposition and a strong vote of confidence for our group' s growth plans and proven track record in innovating and introducing products aligned to the evolving electronics industry."

He added: " Our successful listing also serves as a strategic platform for us to attract capital and the right talent, as we seek to grow and capitalise on opportunities to realise our business strategies and future plans."

Based on the invitation price of S$1.28 and the post-invitation share capital of 773.72 million shares, Aztech' s market capitalisation will stand at S$990.4 million.

Separately, a total of 18 cornerstone investors including DBS, acting on behalf of some wealth management clients the Employees Provident Fund Board JPMorgan Asset Management (Singapore) and HSBC Global Asset Management (Hong Kong) had subscribed for 163.88 million shares at the invitation price.

The estimated net proceeds due to the company from the invitation and issuance and sale of cornerstone shares, after deducting the relevant expenses, will be S$188.6 million.

UOB and Maybank Kim Eng Securities were the joint issue managers for the IPO. UOB, Maybank Kim Eng Securities, and DBS were the joint global coordinators, bookrunners and underwriters for the IPO.

Trading of shares is expected to commence at 9am on Friday.

https://www.businesstimes.com.sg/companies-markets/aztech-globals-ipo-public-offer-184-times-subscribed

 

Their action in 2017 only tells investors that they are simply not interested in enhancing the shareholders' value.
Instead they are interested in increasing their own wealth...better stay far far away or else they will suck you dry....

 

lorann      ( Date: 05-Mar-2021 18:13) Posted: Suck retailers dry dry look@bright      ( Date: 05-Mar-2021 14:51) Posted: Retailers = ATM

 

Once bitten, twice shy.

 

confirmed sgx is running out of new listing from new companies. Straits Trading is considering relisting ARA reit!

zillion      ( Date: 05-Mar-2021 14:45) Posted: It seems sgx is very desperate no fish shrimps also can to list here. sgx runs out of ideas and people working in there must be under pressure to get more listings despite short changing the minorities shareholders of every listed companies.

 

Unlike in usa where one can fail fail fail and given unlimited chances to pick up self again and again to one day become successful. Maybe this time with wide usage of IOTs, hopefully old man retires and let next generation repair damage done by old boss. 

uiop1223      ( Date: 05-Mar-2021 17:41) Posted: I knew aztech quite well. Hopefully this time it can do better zillion      ( Date: 05-Mar-2021 14:45) Posted: It seems sgx is very desperate no fish shrimps also can to list here. sgx runs out of ideas and people working in there must be under pressure to get more listings despite short changing the minorities shareholders of every listed companies.

 

2017 delisted $21m
2021 re listing at $990m

Better than Tesla lol!

 

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后 来 爱 捷 特 全 年 出 现 亏 损 股 价 从 $1掉 到 32分 。 公 司 马 上 宣 布 退 市 出 价 42分 。 那 时 公 司 资 产 值 94分 少 了 一 半 。 总 市 值 才 两 千 多 万 20m。 说 什 么 下 来 业 绩 不 会 好 转 所 以 独 立 董 事 也 劝 说 小 股 东 接 收 献 议 。
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但 是 公 司 资 产 才 3.86分 要 以 $1.28 足 足 30倍 比 起 当 初 要 小 股 东 接 受 少 过 一 半 的 资 产 献 议 足 足 少 了 60倍 。 也 就 是 说 当 初 的 42分 应 该 大 涨 60倍 到 $25。 叫 人 家 接 受 退 市 时 说 公 司 只 值 两 千 多 万 现 在 重 新 上 市 说 市 值 应 该 值 9.9亿 。