Aztech Global net profit grows 55.4% for 9M 2021

HIGHER demand for Internet of Things (IoT) and data-communication products helped tech products manufacturer Aztech Global's nine-month net profit rise 55.4 per cent year on year to S$47.4 million.

Earnings per share (EPS) for the January-September 2021 period stood at 6.46 Singapore cents, up from 4.93 cents in 9M 2020, said the mainboard-listed company in its business update on Thursday (Oct 14) evening.

Revenue increased 49 per cent to S$390.7 million, thanks to the 70 per cent jump in revenue from IoT devices and data-communication products, which accounted for about 94.2 per cent of the group's bottom line.

For the third quarter ended Sep 30, 2021, net profit grew 11.1 per cent to S$18 million, from S$16.2 million in the second quarter.

Revenue ticked up by 5.5 per cent to S$141.1 million over the same period. EPS was 2.45 cents for the latest 3 months, up from 2.28 cents in the prior quarter.

As at end-September, the group's order book totalled S$569 million. Since then, it also received additional orders of S$67 million as at Oct 14. About S$426 million of orders are scheduled for completion next year.

Despite components and labour constraints at its manufacturing facilities in Dongguan, China, and a 60 per cent workforce limitation at the Johor plant in Malaysia, Aztech Global delivered the majority of its customer orders on schedule.

Its China facilities continued to account for the bulk of the manufacturing activities in the first 9 months of this year. The company increased its production headcount in Dongguan, in line with the greater demand and shipment of IoT devices and data-communication products.

Aztech Global noted that the global component shortage is unlikely to abate in the next 6 to 12 months.

Its chairman and chief executive officer Michael Mun said the group will focus on addressing the operating challenges to deliver orders on schedule. Barring unforeseen circumstances, Aztech Global is "cautiously optimistic" of its fourth-quarter performance, he added.

Shares of the company rose about 3.8 per cent or S$0.04 to close at S$1.09 on Thursday (Oct 14), before the business update was released.