Maybank Investment Bank Berhad
Date of Report: September 1, 2025
Aurelius Technologies (ATECH): Strong 1H25 Performance Fuels Optimism for 2H25 Growth

Key Takeaways: Aurelius Technologies Delivers Robust First Half, Maintains Upbeat Outlook

Aurelius Technologies Berhad (ATECH), a leading provider of manufacturing solutions for industrial electronic products, posted a solid performance for 1H25, meeting both in-house and consensus expectations. With core earnings rising and key segments showing strong growth, Maybank Investment Bank Berhad reiterates its BUY recommendation, maintaining a target price (TP) of MYR1.19. The report highlights ATECH’s healthy margins, favorable tax rates, and its strategic positioning as a beneficiary of global trade diversions.

1H25 Results at a Glance: Revenue and Earnings in Line with Expectations

ATECH’s first half of fiscal 2025 saw core earnings climb 14% year-over-year to MYR34 million, representing 47% of full-year estimates. Revenue increased 12% year-over-year to MYR311 million, driven by robust growth in the Communications & IoT and Semiconductor Components segments, which offset declines in Electronic Devices. Gross profit margins rose slightly, aided by a lower effective tax rate of 21.9%.

Segmental and Geographical Revenue Breakdown: Key Growth Drivers Identified

ATECH’s segmental performance underscores its strategic focus on growth markets:

• Communications & IoT Products: 1H25 revenue surged 19.2% YoY to MYR260.1 million, now contributing 84% of total revenue.
• Semiconductor Components: Outstanding YoY growth of 32.3% to MYR16.4 million in 1H25, representing 5% of group revenue.
• Electronic Devices: Saw a 27.5% YoY decline to MYR34.3 million, now making up just 11% of revenue.

Geographically, the Americas continue to be the largest market, accounting for 61% of 1H25 revenue despite a 10.4% YoY drop. APAC (excluding Malaysia) showed strong growth (+35.9% YoY), while Europe and Malaysia experienced declines.

Quarterly Trends: 2Q25 Sees Revenue Momentum, Mixed Margins

Second quarter 2025 revenue jumped 10% quarter-on-quarter to MYR163 million, with all major business segments registering sequential gains. However, earnings remained flat due to higher operating costs, despite a 0.7ppt improvement in gross profit margin. The orderbook eased to MYR436 million from MYR495 million previously, signaling some moderation in backlog but not enough to change the positive outlook.

Financial Position, Valuation, and Dividend Highlights

ATECH remains in a strong financial position, maintaining a net cash status with ample liquidity and healthy current ratios. Its valuation, at 21x FY25E EPS (near +1SD of the sector’s 5-year forward mean PE), supports the positive call given its growth trajectory and margin resilience.

Valuation, Price Performance, and Shareholder Snapshot

Current Price: MYR1.02
12-month Target Price: MYR1.19 (20% upside)
Market Capitalization: MYR1.3 billion
52-week High/Low: MYR1.18 / MYR0.38
Major Shareholders:
Main Stream Holdings Sdn Bhd (16.1%)
Main Stream Ltd (17.6%)
EPF (7.8%)

Forecast and Outlook: Stronger 2H25 Expected, Supported by Historical Trends

Maybank continues to maintain its forecasts, anticipating a stronger second half due to seasonality and positive demand trends. ATECH is viewed as a clear beneficiary of global trade shifts, with exposure to niche international customers and a solid growth pipeline.

Key Risks to Watch

Investors should note several risk factors that may impact ATECH’s outlook:

• Potential demand weakness due to inflation or geopolitical tensions
• Cost pass-through limitations depending on customer negotiations
• Operational disruptions from labor or component shortages
• Forex fluctuations that could squeeze margins

Conclusion: BUY Recommendation Reiterated for Aurelius Technologies

With a robust first half, improving margins, resilient core segments, and a strong balance sheet, ATECH remains a top pick for investors looking for growth in Malaysia’s technology manufacturing sector. The 12-month target price of MYR1.19 reflects confidence in its earnings trajectory and strategic positioning, with a projected return exceeding 10% over the next year.

Historical Recommendations and Target Price Movements

Final Thoughts

Aurelius Technologies continues to impress with resilient financials, market expansion, and a clear strategy for sustainable growth. Investors seeking exposure to Malaysia’s dynamic technology sector should keep a close eye on ATECH as it navigates the remainder of FY25 and beyond.