UOB Kay Hian Report – October 30, 2024

Aztech Global: Navigating Profitability Pressures in a Challenging Market

Aztech Global (AZTECH SP), a Singapore-based technology manufacturer specializing in electronics and IoT devices, encountered hurdles in 3Q24, with results that missed market expectations. As demand slows, Aztech faces increasing pressure to maintain profitability amid rising costs and a competitive landscape. The company’s recent performance has underscored the challenge of balancing operational costs while sustaining growth in a market that is grappling with fluctuating demand and rapid technological evolution.

In response, Aztech has emphasized operational efficiency, focusing on cost controls and supply chain optimization to navigate these financial pressures. However, despite these efforts, the outlook for Aztech remains cautious as it works to regain momentum. The company has retained a “HOLD” rating, with a target price of S$0.90, reflecting a measured approach given current market conditions.

Moving forward, Aztech Global’s strategic focus will likely center on identifying growth opportunities within its core technology segments while continuing efforts to streamline operations. The company’s ability to adapt to shifting market demands will be key in determining its future trajectory as it seeks to establish a firmer footing in the evolving tech landscape.

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