Latest news with #AztechGlobal
Business Times
6 days ago
- Business
- Business Times
Stocks to watch: AEM, Aztech Global
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Friday (Jun 27): AEM : The semiconductor test solutions provider raised its revenue guidance for its first half ending June to between S$185 million and S$195 million, up from an earlier range of S$155 million to S$170 million. The group on Thursday said the upward revision follows an unexpected pull-in of orders into FY2025, but maintained its view that the business environment faces uncertainty stemming from the tariff situation. It will report its earnings on Aug 13. The counter ended Thursday 14.5 per cent or S$0.18 higher at S$1.42 after the announcement. Aztech Global : Its wholly owned subsidiary Huuve on Wednesday entered into a sale and purchase agreement with JT Automation Technology (Malaysia) to divest factory buildings and land in Johor, Malaysia, for a consideration of RM28.8 million (S$8.7 million). Upon completion of the sale, which is subject to approval from the Johor State Authority, the group will reap a net gain of around RM13.7 million. The counter ended Thursday 4.3 per cent or S$0.025 higher at S$0.60, before the announcement.
Business Times
22-05-2025
- Business
- Business Times
From Singapore to the world, creating products to solve problems
[SINGAPORE] From making and selling computers in the 1980s to now designing and manufacturing electronics for major brands, Aztech Global has come a long way since its inception in 1986. On the cusp of its 40th anniversary, Aztech has kept to a simple philosophy in deciding which products and sectors it enters. 'When you create a product, you have to solve a problem, because when you encounter a problem, you find a solution,' said Michael Mun, chief executive officer, Aztech Global which won the Enterprise Award at the Singapore Business Awards. With expertise in data communication, Aztech has produced everything from modems to WiFi-enabled cameras to the Powerline products that allow for data transmission over a power line. Powerline in particular has seen much success outside of Singapore, due to older buildings having a lack of an Internet point to connect to. 'Until today, we are still selling this product in European countries; Germany is one of the big markets,' said Mun. In the last 10 years, Aztech has entered into the Internet of Things (IoT) segment, where sensors or devices are connected in a network to share data. The majority of the company's income comes from the IoT segment now, said Mun. GET BT IN YOUR INBOX DAILY Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up VIEW ALL Innovating for a breakthrough The company is not content with the status quo, constantly looking to innovate and find a breakthrough to make a product better. Driven by a lack of solutions, one such product that Aztech branched into was lighting, entering the LED lighting market 15 years ago when options were limited to fluorescent and incandescent lighting. Responding to a potential lighting project for Jurong Town Council, Aztech designed a LED lighting product, which the town council eventually accepted. This led to more LED lighting projects across other town councils. 'We started from Singapore and went international, we sell a lot of LED lighting into Europe and Japan,' said Mun. Part of Aztech's success is its commitment to research and development (R&D). Rather than just purely competing on manufacturing or price, the company competes on its expertise. 'If you are fighting on price, we can never succeed or survive, because it is very competitive. We are almost 40 years old because of R&D, and customers come to us because of our design capability,' said Mun. International markets From its base in Singapore, Aztech has grown to serve international customers, with North America making up the bulk of revenue in 2024 at 79.1 per cent, and Europe taking second place at 15.5 per cent. The company set its sights on international markets early on, during its start as a PC manufacturer, breaking into the old Eastern Bloc markets of Poland, Hungary, Russia and East Germany before the fall of the Berlin Wall. 'Without going international we won't be where we are today because, realistically, the local market is too small for us,' said Mun. Aztech's research and development efforts are also not confined to Singapore, with R&D centres in Hong Kong and China. Singapore's small labour pool necessitated expansion into other markets to get the right talent to join the company's team. Besides making their own products, Aztech is also active in contract manufacturing and joint design and manufacturing, partnering with customers to design and manufacture their products. In helping customers design and manufacture products, a key question that Aztech asks is what is their target price. This is important as the price point has to be palatable to the eventual end-users for the product to sell. 'Whether you have a market, I think it has to be a price the consumer will be able to accept, because if the price point is not affordable, consumers cannot buy, then there is no point to create the product,' said Mun. Copycats and geopolitics There are challenges that Aztech faced in getting to this point, dealing with copycats and geopolitical tensions. Consumer electronic makers face the issue of seeing a copycat version pop up soon after their products hit the market. Aztech is not afraid of others copying their products, said Mun. Competitors will often buy your products to open up, analyse and see what they can learn. 'You have to continue to invest and expand your R&D capacity so you will be ahead of them, then you will be able to compete,' said Mun. Closer to home Dealing with geopolitical challenges have also led Aztech to move manufacturing closer to home in Malaysia, setting up a manufacturing plant in Pasir Gudang, Johor. This plant is an alternative to Aztech's China plant, and allows for products to be shipped with lower tariffs. The factory in Malaysia is about 300,000 square feet, and has led to the downsizing of the plant in China due to geopolitical tensions. 'In fact today our Malaysia plant contributes almost 80 per cent of our sales,' said Mun. Aztech's DNA still remains in product development, design and manufacturing, with the company continuing to invest in R&D for manufacturing. Automation will be a key focus moving forward, for Aztech's factories, with a combination of artificial intelligence and machines to improve quality checks. Looking to leverage on Aztech's background in electronics and automation, the company will be looking to apply this knowledge back into the two manufacturing plants. 'We develop a lot of things, but we use it inhouse. Eventually we can sell it to our customers too,' said Mun.
Yahoo
16-05-2025
- Business
- Yahoo
Could The Market Be Wrong About Aztech Global Ltd. (SGX:8AZ) Given Its Attractive Financial Prospects?
Aztech Global (SGX:8AZ) has had a rough month with its share price down 26%. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on Aztech Global's ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've discovered 2 warning signs about Aztech Global. View them for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Aztech Global is: 17% = S$56m ÷ S$339m (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.17. See our latest analysis for Aztech Global Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To begin with, Aztech Global seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.5%. Probably as a result of this, Aztech Global was able to see a decent growth of 7.0% over the last five years. When you consider the fact that the industry earnings have shrunk at a rate of 4.2% in the same 5-year period, the company's net income growth is pretty remarkable. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Aztech Global is trading on a high P/E or a low P/E, relative to its industry. While Aztech Global has a three-year median payout ratio of 68% (which means it retains 32% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Additionally, Aztech Global has paid dividends over a period of four years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 83% over the next three years. Accordingly, the expected increase in the payout ratio explains the expected decline in the company's ROE to 10%, over the same period. In total, we are pretty happy with Aztech Global's performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
16-05-2025
- Business
- Yahoo
Could The Market Be Wrong About Aztech Global Ltd. (SGX:8AZ) Given Its Attractive Financial Prospects?
Aztech Global (SGX:8AZ) has had a rough month with its share price down 26%. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on Aztech Global's ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've discovered 2 warning signs about Aztech Global. View them for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Aztech Global is: 17% = S$56m ÷ S$339m (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.17. See our latest analysis for Aztech Global Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To begin with, Aztech Global seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.5%. Probably as a result of this, Aztech Global was able to see a decent growth of 7.0% over the last five years. When you consider the fact that the industry earnings have shrunk at a rate of 4.2% in the same 5-year period, the company's net income growth is pretty remarkable. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Aztech Global is trading on a high P/E or a low P/E, relative to its industry. While Aztech Global has a three-year median payout ratio of 68% (which means it retains 32% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Additionally, Aztech Global has paid dividends over a period of four years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 83% over the next three years. Accordingly, the expected increase in the payout ratio explains the expected decline in the company's ROE to 10%, over the same period. In total, we are pretty happy with Aztech Global's performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
18-04-2025
- Business
- Yahoo
Aztech Global (SGX:8AZ) shareholders have lost 25% over 1 year, earnings decline likely the culprit
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Aztech Global Ltd. (SGX:8AZ) share price slid 42% over twelve months. That's well below the market return of 20%. We note that it has not been easy for shareholders over three years, either; the share price is down 41% in that time. Even worse, it's down 27% in about a month, which isn't fun at all. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report. Since Aztech Global has shed S$123m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Unhappily, Aztech Global had to report a 45% decline in EPS over the last year. We note that the 42% share price drop is very close to the EPS drop. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Rather, the share price has approximately tracked EPS growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at our free report on Aztech Global's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Aztech Global's TSR for the last 1 year was -25%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! Aztech Global shareholders are down 25% for the year, (even including dividends), but the broader market is up 20%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 3% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Aztech Global better, we need to consider many other factors. For instance, we've identified 2 warning signs for Aztech Global (1 is significant) that you should be aware of. But note: Aztech Global may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
