Broker Name: Maybank Research Pte Ltd
Date of Report: October 17, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Aztech Global’s 3Q25 revenue and net profit were slightly better than expected, with improvements in customer diversification and operational efficiency. The company secured 22 new products and 11 new customers, with several new projects set to start production soon.
- Despite positive moves, overall revenue remains below previous highs due to lower orders from a key customer. Management has right-sized manufacturing by selling and leasing back factories in China and Malaysia to enhance efficiency.
- Aztech’s outlook for 2H25 is better than 1H25, but a full recovery to FY23 levels is not anticipated soon. The report maintains a HOLD rating with a target price increase to SGD0.61, citing limited upside and preferring peer Frencken.
- The company remains net cash, continues to focus on new customer growth, and maintains above-average ESG scores with progress on sustainability initiatives and governance practices.
- Key risks include industry commoditization, component shortages, and potential inventory corrections. Upside could come from stronger-than-expected new orders or margin improvements.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : https://www.maybank-keresearch.com
