Aztech Global has reported a 34.2% growth in net profit to $63.7 million for the 9MFY2022 ended September, compared to the same period last year.
Revenue stood at $607 million, up 55.4% y-o-y. This was despite the ongoing pandemic and the challenges it has brought to the world which included continual disruption to the global supply chain, the company said in its filing.
Internet of things (IoT) devices and data-communications products continued to be its key revenue contributors, as strong production volume and shipment of IoT devices as well as data-communication products to customers in its 3QFY2022 led to 71.8% surge in revenue to $242 million during the period.
For 9MFY2022, Aztech’s EBITDA increased by 35.7% y-o-y to $84 million. Basic earnings per share increased to 8.25 cents for 9MFY2022 from 6.46 cents in 9MFY2021, while its NAV per share as at Sept 30 stood at 40 cents from 38 cents as at Dec 31, 2021.
Gains from fulfilment of critical mass orders, cost control measures and increase in interest income attributable to higher fixed deposit rate were partly offset by net fair value loss on derivative financial instruments of $15.4 million, attributable to foreign exchange (forex) losses resulting from the weakening of the renminbi to the US dollar.
The company will tighten its forex risk management with a prudent approach towards foreign currencies exposure for its operational needs. It expects its FY2022 results to be impacted by the fair value loss on these derivative financial instruments.
See also: Trump wins Republican nomination, setting up rematch with Biden
Aztech’s balance sheet remains healthy with cash and bank balances of $304.5 million as well as net cash of $254.9 million as at Sept 30. Accumulated profits increased by 27.4% to $116.3 million following a dividend payment of $38.6 million in May.
Taking into consideration the healthy balance sheet position and capital requirements of the company’s operations, its board of directors has recommended a one-tier tax-exempt cash dividend of 3 cents a share, amounting to $23.2 million or 36.4% payout from its earnings for 9MFY2022.
The record and payment date for the interim dividend is on Nov 11 and Nov 23 respectively, and shares of the company will trade on ex-dividend basis on Nov 10.
“We are pleased to propose an interim dividend of 3 cents a share to reward our shareholders for their confidence in our growth strategy. We will continue to stay vigilant and nimble to manage the myriad of headwinds ahead,” says Aztech chairman and CEO Michael Mun.
Shares in Aztech closed 0.5 cents lower or 0.61% down at 81 cents on Nov 3.
