Broker: CGS International
Date of Report: July 29, 2026
Excerpt from CGS International report.
Report Summary
Stock: Aztech Global Ltd (AZTECH SP)
Action: Downgrade to REDUCE (previously ADD)
Target Price: S$0.57
Current Price: S$0.83
Implied Downside: -31.3%
Key Insights:
- Call to Action: The report recommends investors reduce exposure to Aztech Global Ltd due to a challenging outlook.
- Main Idea: Aztech reported disappointing 1H26 results with revenue and net profit significantly below expectations. Management expects softer demand and increased competition to persist in 2H26, impacting both revenue and earnings.
- Earnings Revision: FY26-28F revenue forecasts were cut by 26.6-33.2%, resulting in 40.0-58.9% reductions to EPS forecasts. The target price was slashed from S\$1.14 to S\$0.57.
- Valuation: Despite still applying a premium 19x FY27F P/E, CGSI sees negative -9.8% EPS CAGR over FY25-28F, justifying a downgrade.
- Risks: Downside risks include order cancellations from economic slowdown, volatile forex, and rising competition for Aztech and its main customer’s products.
- Potential Upside Catalysts: New customer/project wins and a recovery in main customer demand could drive future upgrades, but these are not yet visible.
Financial Highlights:
- 1H26 revenue: S\$151.4m (-18.4% yoy), net profit: S\$9.4m (-41.7% yoy), both well below consensus and internal forecasts.
- FY26F net profit forecast: S\$18.2m (vs. S\$44.2m previously).
- Dividend per share cut to 0.5 Scts.
Summary: The actionable call is to REDUCE Aztech Global Ltd (AZTECH SP) with a target price of S$0.57, given a deteriorating earnings outlook, higher competition, and weak demand visibility.
Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
CGS International research website
