In a report released yesterday, John Cheong from UOB Kay Hian maintained a Hold rating on Aztech Global Ltd. (8AZ – Research Report), with a price target of S$0.65.
John Cheong has given his Hold rating due to a combination of factors affecting Aztech Global Ltd. The company’s 2024 earnings were slightly below expectations, with a net profit of S$71 million, representing a 30% year-on-year decline. This was primarily due to a 31% drop in revenue, driven by reduced demand for IoT devices and data-communication products.
Furthermore, Aztech Global is facing demand volatility amid rising geopolitical uncertainties and trade restrictions, which adds to the uncertainty of its future performance. Despite these challenges, Aztech has proposed a special and final dividend totaling 10 S cents per share, reflecting a significant increase in payout ratio. The absence of orderbook figures for the first time also suggests a normalization in order lead times, which could impact future revenue visibility. These factors collectively contribute to the Hold rating, as the outlook remains uncertain.
According to TipRanks, Cheong is ranked #1514 out of 9385 analysts.
In another report released on February 25, CGS-CIMB also downgraded the stock to a Hold with a S$0.67 price target.