Broker: DBS Group Research
Date of Report: 29 July 2026
Excerpt from DBS Group Research report.
Report Summary
Aztech Global Ltd (AZTECH SP) has been downgraded to FULLY VALUED by DBS Group Research following weaker than expected 1H26 results. The report highlights the following key points for investors:
- Action & Call: Downgrade to FULLY VALUED (from HOLD) due to deteriorating earnings outlook and limited near-term catalysts.
- Target Price: Lowered to SGD0.66 (from SGD0.93). Last traded price was SGD0.83.
- Key Idea: Aztech’s near-term outlook remains subdued as demand from its largest customer (contributing over 50% of revenue) softens. New project wins and customer diversification are ongoing, but not enough to offset the decline in orders from the key customer in the short term.
- Earnings Revision: FY26F and FY27F earnings cut by 60% and 40% respectively.
- Financial Highlights: 1H26 revenue fell 18.4% year-on-year to SGD151.4 million, with net profit down 41.7% year-on-year to SGD9.4 million. 1H26 results missed expectations, with both revenue and net profit only accounting for 32% and 22% of full-year forecasts respectively.
- Strategic Focus: Aztech continues to diversify into MedTech and renewable energy, and is expanding its proprietary product portfolio. However, meaningful earnings contributions from these initiatives are expected to materialize gradually.
- Risks: High customer concentration, ongoing competitive pressures, foreign-exchange volatility, and limited demand visibility.
Ticker: AZTECH SP
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can access the full research report from the broker’s website.
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