To this end, Maybank analyst Jarick Seet points out that Aztech is one of the few factories in Dongguan that is still busy with customer orders. “Many factories are suffering or have closed down following China’s re-opening as customers are shifting production out of China. However, Aztech’s key customer has been doing well and it has been rewarding Aztech with more orders,” says Seet.
Analysts at CGS-CIMB Research and Maybank Securities are maintaining their “add” and “buy” calls on Aztech Global (SGX:8AZ
) upon visiting the company’s plant as well as research and development (R&D) centre in Dongguan, China last week.
In his report, CGS-CIMB analyst William Tng notes that the third quarter tends to be the peak production period for tech-related manufacturing, in preparation for the fourth quarter holiday sales. The production activities observed by Tng suggest that Aztech is likely to see a stronger 3QFY2023 financial performance versus 2QFY2023, in line with the trend.
