Aztech Global, a Singapore-based electronics manufacturer, is set to book a gain of S$42m from the sale of its factory and land in Malaysia. Despite this financial boost, the company is grappling with a weakening order momentum, as new customer wins fail to compensate for the decline in orders from key clients, said DBS Group Research. This has led to a significant reduction in revenue and earnings projections for the financial years 2025 and 2026, with estimates cut by approximately 50%.
The company’s outlook remains challenging, prompting analysts to maintain a “fully valued” rating with a lower target price of SGD0.38. The strategic sale of the Malaysian assets provides a temporary financial uplift, but it does not address the underlying issues of declining demand from major customers.
Aztech Global’s struggle highlights the broader challenges faced by manufacturers in the region, where dependency on a few key clients can lead to volatility in financial performance. The company’s efforts to diversify its customer base have not yet yielded sufficient results to offset the downturn from its primary clients.
Looking ahead, Aztech Global will need to focus on strengthening its customer portfolio and exploring new market opportunities to stabilise its financial outlook. The company’s ability to adapt to changing market conditions will be crucial in determining its future success.
“`
