Mainboard-listed Aztech Global has reported net profit of $13.9 million for the 1QFY2022 ended March, up 5.3% from net profit of $13.2 million in the same period the year before.
Earnings per share (EPS) for the quarter, however, fell 10.9% y-o-y to 1.79 cents, due to the higher base of 771.95 million ordinary shares in the 1QFY2022, compared to the 653.16 million shares in the 1QFY2021.
1QFY2022 revenue grew by 10.4% y-o-y to $128.0 million.
According to the group, the “resilient performance” was thanks to its strength in internet of things (IoT) devices and data-communication products, despite a six-day stop-work order by the Dongguan government in China to prevent the further spread of Covid-19.
During the quarter, revenue from IoT devices and data-communication products increased by 16.4% y-o-y to $123.7 million, which accounted for 96.6% of the group’s total revenue.
“IoT devices and data-communications products have continued to be the group’s key growth drivers amidst strong production volume and shipment of IoT and data-communication products to customers,” reads the statement released by Aztech Global on April 18.
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LED lighting products contributed to the balance with a revenue of $4.3 million for the 1QFY2022.
The higher revenue was partly offset by inflationary cost pressures that led to margin compression of 60 to 110 basis points for the group’s 1QFY2022 EBITDA, pre-tax profit and net profit.
EBITDA during the quarter grew by 2.2% y-o-y to $18.3 million, while profit before tax increased 4.6% y-o-y at $15.9 million.
As at end-March, the group’s cash and bank balances stood at $298.6 million. Net cash for the period stood at $289.3 million.
As at March 31, Aztech Global’s orderbook stood at $677.4 million with additional orders of $35.6 million as at April 18.
Most of the orders secured to date are scheduled to be completed in FY2022.
In its outlook statement, Aztech says it will continue its three-pronged approach to “manage component tightness” as the electronics supply chain and the group’s operations remain vulnerable to new Covid-19 outbreaks in China.
It adds that it is committed to its five focuses of growing new IoT customers and products, deepening its manufacturing and IoT expertise, optimising factors of production and output, integrating sustainability into its business model and strategy, and continuing with its disciplined balance sheet and cost management to fortify its business resiliency.
With the measures set out, Aztech says it expects its business to benefit from the global demand for IoT devices, data communication products and smart lighting solutions, as well as its strong order book secured.
Aztech Global’s chairman and CEO Michael Mun says, “We will continue to be vigilant and will respond to challenges in a measured manner, focusing on building our business fundamentals that will position us well to capture growth opportunities moving forward.”
Shares in Aztech Global closed 5 cents higher or 5.26% up at $1 on April 18.
