Post Reply
241-260 of 300
Analysts trim Aztech Global' s target prices on component shortage risks
DBS and CGS-CIMB are lowering their target prices for technology solutions provider Aztech Global, as analysts remain cautious amid operational risks arising from component shortages.DBS has lowered its target price by S$0.11 to S$1.74 while CGS-CIMB trimmed its target price by S$0.09 to S$1.82. The research houses have maintained their respective " buy" and " add" calls on the group.
The lower target prices come despite Aztech more than doubling its net profit to S$29.4 million for the first half ended June, from S$13 million in the year-ago period.
Revenue jumped 93.4 per cent to S$249.7 million on the back of an increase in sales volume for Internet of Things (IoT) devices and data communication products.
Still, Aztech' s H1 results came in " slightly below" DBS' s expectations, weighed down by industry-wide component shortages.
" Though Aztech is still able to secure most of the components, leveraging on its strong customer-supplier relationship, there is a small amount of critical components that Aztech has to pay a higher price of about 2 to 5 per cent more in order to secure. And not 100 per cent of the cost increase can be passed to customers," said DBS analyst Ling Lee Keng in a report on Monday.
As such, she said, Aztech' s gross margin fell to 27 per cent for H1, from 30.1 per cent in the corresponding half-year period a year ago.
" Aztech is also exploring with its customers to look for new suppliers but this path could be more costly," Ms Ling said. " We are more cautious, as we expect the component shortage issue to worsen in H2 2021 and to see an improvement only in 2022."
CGS-CIMB analyst William Tng is of the opinion that Aztech' s H2 performance hinges on its ability to secure enough components to fulfil customers' orders.
He noted that Aztech' s order book growth continued to gain strong traction, rising 24 per cent from Q1 to hit S$604.4 million as of end-July.
" Going into H2 2021, Aztech continues to see strong demand for its products but getting components remains a challenge," Mr Tng said.
Shares of Aztech Global were trading 3.2 per cent or S$0.04 lower at S$1.23 as at 1.41pm on Monday.
Aztech&rsquo s 1H earnings more than double to $29.4 mil
Aztech Global&rsquo s earnings more than doubled to $29.4 million in 1HFY2021 ended June 30, from $13 million a year ago.
The electronics manufacturer&rsquo s revenue almost doubled to $249.7 million from $129.1 million a year ago.
The higher revenue was driven mainly by higher sales volume of IoT devices and data-communication products, owing to increased demand from customers, the company says.
As at June 30, Aztech&rsquo s order book stood at $530.4 million.
The company has since received additional orders of $74 million as at July 30.
According to Aztech, the expansion works of its facility in Malaysia to 86,000 sq ft has been completed according to schedule.
However, the facility is subject to a limit of 60% of total workforce since June this year following resurgence of COVID-19 infection in the country.
As a result, the transfer of the company&rsquo s production to Malaysia from China was delayed with the China facilities continuing to account for the bulk of the manufacturing activities during 1H 2021.
Aztech says it will continue to prioritise the safety and well-being of its employees.
Looking ahead, the company says the global shortage of components is unlikely to abate in the next six to 12 months.
The company adds that it will continue to collaborate with its suppliers, customers and relevant stakeholders to secure key components in the production to meet demand.
&ldquo In spite of the challenges, the group remains committed to growing its footprint in tandem with the growth in the IoT and data-communication space,&rdquo Michael Mun, chairman and CEO of Aztech, says in a July 30 statement.
NAV so Low and sell IPO so high !
Fool me once, shame on you fool me twice, shame on me.
Jamesbond007 ( Date: 31-Jul-2021 10:17) Posted:
|
Old-timers would stand clear of company.
Once bitten, twice shares.
Aztech Global H1 profits more than double to S$29.4 million as tech market heats up
Mainboard-listed tech dealer Aztech Global' s earnings surged in the first half as customer orders drove up sales volume in the smart devices market.Net profit more than doubled to S$29.4 million for the six months to June 30, from S$13 million in the year-ago period, according to unaudited results released on Friday.
Revenue rose to S$249.7 million, up by 93.4 per cent from S$129.1 million before, which Aztech attributed to demand for Internet of Things (IoT) devices and data communication products. Most of the turnover was from the distribution and trading business.
The latest revenue growth came " despite the Covid-19 pandemic affecting the group' s operations in People' s Republic of China and Malaysia" , Aztech noted in its financial statements. Singapore-based Aztech has research and development facilities in Singapore, Hong Kong and mainland China, as well as manufacturing plants in China and Malaysia.
Earnings per share stood at 4.12 Singapore cents for the half-year. That was up from 2.10 cents previously, based on the share capital before Aztech' s listing in March. Meanwhile, net asset value was S$0.32 a share, against S$0.07 as at Dec 31, 2020.
While Aztech plans to keep growing the IoT and data communication business, it added that it intends to secure new orders in the consumer, industrial and health technology sectors.
Citing the rosy prospects for the IoT and data communication industries, Aztech also said it " remains cautiously optimistic of its prospects in 2021" .
Aztech chairman and chief executive Michael Mun added in a statement: " In spite of the challenges, the group remains committed to growing its footprint in tandem with the growth in the IoT and data communication space."
The order book was S$530.4 million as at July 1, with most of these orders expected to be completed in 2021, barring supply-chain or other constraints.
This comes even as Aztech also noted that a global parts shortage " is unlikely to abate in the next six to 12 months" .
No interim dividend was recommended for the period, with Aztech saying that it " intends to conserve cash and recommend dividend payment annually" . The group earlier paid out cash dividends of S$2.65 a share, and cash or scrip dividend of S$0.02 apiece.
Aztech added S$0.01 or 0.79 per cent, at S$1.27, before the results were released.
Looks in line, analyst FY consensus is approx 75m earnings. As prev years aztech 1H-2H is about 40-60, can expect 75~ earnings FY. No dividends declared, think will move up slightly on Mon but won' t jump
Double earnings to 29.4 million. Very good results
last time i think they report very good above expectations,
This time, hmmm we shall see..
This time, hmmm we shall see..
XVIIIIIXI ( Date: 30-Jul-2021 10:50) Posted:
|
They are announcing their 1H FY2021 financial result today. Any expectation?
seem like strong today...
actan99 ( Date: 16-Jul-2021 10:49) Posted:
|
Their products seems to be very essential and in demand for IOT and 5G,
I think their releasing their 1H 20201 financial results in end july ?
Should be good earnings ? We shall see. ..
I think their releasing their 1H 20201 financial results in end july ?
Should be good earnings ? We shall see. ..
One of the most misunderstood counters in SGX. Highly undervalued...
Short to enjoy
Can' t hold above 1.30, tmr short from opening bell
seem strong today...
Friend i just exited $1.35
Swee
Coming
PQTPQK ( Date: 18-May-2021 11:01) Posted:
|
1.30 going to gone soon ...