SINGAPORE - Aztech Global has posted a 15.9 per cent increase in net profit to $73.8 million for its first nine months ended Sept 30, 2023, up from $63.7 million in the corresponding period of the year before.
Earnings per share stood at 9.56 Singapore cents for the nine-month period, up from 8.25 Singapore cents from 9M 2022.
Revenue for the first nine months of the year rose 10.7 per cent to $672 million, from $607 million a year ago. This was mainly driven by a year-on-year increase in sales of Internet of Things (IoT) devices and data-communication products, said the company in a business performance update on Monday.
For Q3 alone, the company posted a net profit of $30.9 million, an increase of 4.7 per cent from the previous quarter; and revenue jumped 24.8 per cent to $283.4 million from $227 million in Q2.
This was largely due to revenue growth, greater economies of scale, higher interest income and net fair value gain on foreign exchange contracts, said Aztech.
The group expects the ongoing tough economic conditions and geopolitical uncertainties to persist for the rest of the year. It thus remains cautiously optimistic of its business prospects for 2023, amid the high interest rates, volatile foreign exchange and inflationary cost environment, it added.
Notwithstanding the tough business environment, its order book remains strong with $322.7 million secured as at Oct 16, 2023.
A significant portion of the orders were for IoT solutions across varied market segments including consumer and lifestyle, security, communication, automotive, healthcare, tracking and point of sales, scheduled for completion in FY2023, said Aztech.
In its press statement, the group also updated that its 300,000 square foot Pasir Gudang manufacturing facility has commenced production during the third quarter. The group’s total production requirements are currently being fulfilled by its facilities in Malaysia and China.
Aztech’s chairman and chief executive officer Michael Mun said: “We have delivered a strong set of 9M 2023 results albeit a very challenging landscape. We remain focused on sharpening our manufacturing expertise and expanding our offerings in the IoT industry.”
Shares of Aztech Global closed $0.01 or 1.2 per cent lower at $0.855 on Monday, ahead of the announcement. THE BUSINESS TIMES
