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Aztech Global - UOB Kay Hian 2022-02-23: 2021 Results In Line, Robust Orderbook Indicates Strong Growth For 2022

AZTECH GLOBAL LTD. (SGX:8AZ) | SGinvestors.io AZTECH GLOBAL LTD. (SGX:8AZ)

Aztech Global - 2021 Results In Line, Robust Orderbook Indicates Strong Growth For 2022

  • Aztech Global's 2021 net profit of S$74m (+34% y-o-y) is in line with our forecast. IoT devices continued to be a key growth driver. Dividend of S$0.05 was a positive surprise vs our estimate of 4 cents.
  • Aztech Global recorded a robust orderbook of S$762m as at 22 Feb 22, which is 22% higher than its 2021 revenue; this indicates strong revenue growth for 2022.
  • Also, Aztech Global is optimistic on its business prospects on the back of strong global demand for IOT devices. Maintain BUY.



Aztech reports strong 2021 results, in line with our expectations.

  • Aztech Global (SGX:8AZ)’s 2021 net profit of S$74m (+34% y-o-y) is in line with our estimate. Despite a tough operating environment caused by global logistical and component challenges, revenue for 4Q21 grew 65% q-o-q and 5% y-o-y. IoT devices and data-communication products continued to be a key growth driver. In 2021, the IOT devices segment grew 40% to S$597m (which accounted for 96% of total revenue), buoyed by the core markets of North America and Europe which contributed over 96% of total revenue.
  • Dividend surprised on the upside. On the back of the strong financial performance, Aztech Global has recommended a final dividend of S$0.05 per share; this is a positive surprise vs our estimate of S$0.04. The dividend payout ratio of 51.9% was higher than the indicated distribution of at least 30% of net profits excluding exceptional items.


Optimistic on 2022 business outlook, backed by robust orderbook.

  • Aztech Global is optimistic on its 2022 business outlook as it expects its operations to benefit from:
    1. healthy global demand for its financial resources for operational and expansion needs.


Aztech Global - Earnings forecast and recommendation






John Cheong UOB Kay Hian Research | Clement Ho UOB Kay Hian | https://research.uobkayhian.com/ 2022-02-23
SGX Stock Analyst Report BUY MAINTAIN BUY 1.550 SAME 1.550



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