Aztech Group has reported FY2020 ended December 2020 earnings of $55.7 million, representing 18.1% growth y-o-y from $47.2 million previously, translating to earnings per share of 9 cents from 7.62 cents previously.
The higher earnings follow higher revenue for the year, which grew 12.9% y-o-y to $484.3 million, with almost half of that attributable to 4QFY2020, which garnered $222 million in revenue.
Aztech says the better 4Q performance was driven by higher production volume and shipment of Internet of Things (IoT) and data-communication products. For the full year, revenue from IoT and data-communication products grew by 46.3% y-o-y to $428.1 million.
EBITDA margin grew 80 basis points y-o-y for FY2020 to 15.8%, while PBT grew 21.4% to $66.5 million for the period, which Aztech attributes to the IoT and data-communication products commanding higher margins and Aztech’s continuing efforts to improve productivity and efficiency. NPAT however, grew only 50 basis points to 11.5%, as profits were partly negated by higher tax expenses arising from higher pre-tax profits and the full utilisation of group tax relief in the previous financial year.
SEE:UOB buys additional 3.6 mil Aztech Global shares, ceases stabilising action
The group’s cash and bank balances stood at a $11.5 million as at December 31, 2020. Aztech notes that in spite of higher working capital requirements due to the need to hold components and raw materials following the on-going component shortages globally, its operations continued to generate sustainable cash flow of $28.6 million for FY2020.
Net asset value (NAV) per share stood at 6.7 cents as at December 31, 2020, up from 3.7 cents in FY2020 mainly due to an 83.4% increase in accumulated reserves.
A final dividend of 2 cents a share on a one-tier tax-exempt basis has been recommended.
Looking ahead, Aztech says it remains focused on expanding its product portfolio catering to the growing IoT, data-communication and LED lighting industries, while working closely with its suppliers and other stakeholders to manage the components shortages situation globally in ensuring smooth production and delivery of orders.
Michael Mun, chairman and CEO of Aztech, says that the group is cautiously optimistic on its prospects. “With the strong order book to date and the measures that we have put in place to mitigate the impact of the COVID-19 pandemic, we are cautiously optimistic of our business prospects for financial year 2021 as we continue with our business to be the key technology enabler for the connected world of tomorrow,” he says.
Aztech’s order book stands at $270.7 million as of January 2, with additional orders amounting to $228.3 million received since then until March 21.
Shares in Aztech closed up 3 cents or 2.4% higher at $1.28 on March 22.
