Aztech Global Ltd. (8AZ) AI Stock Analysis

• Market Cap: S$517.10M
• Dividend Yield: 16.42%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.21
• Revenue Growth: -50.75%
• EPS Growth: -61.46%
• Country: SG
• Employees: 2,000
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 773,825,560
• 10 Day Avg. Volume: 1,120,930
• 30 Day Avg. Volume: 1,408,756
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.46
• Price Target Upside: -31.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: S$0.50 ▼(-25.37% Downside)

Aztech Global Ltd. scores high due to its robust financial performance, characterized by strong balance sheet metrics and effective cash flow management. The stock's valuation is enhanced by a reasonable P/E ratio and an attractive dividend yield. While technical indicators show positive momentum, there are signs of potential overbought conditions, suggesting caution in the short term.

Positive Factors

Cash Position

Aztech generated net cash of S$18.6m from its operating activities as it continued with its disciplined cost and tight working capital management and delivered free cash flow of S$18.3m on prudent capital expenditure.

Customer Diversification

Customer diversification strategy has gained traction with the addition of 12 new products and seven new clients across various segments.

Research and Development

Aztech’s core strengths in R&D, design, engineering, and manufacturing of IoT-related products have supported healthy net margins historically above 10%.

Negative Factors

Customer Dependence

Aztech's dependence on its key customer, which accounts for 80.0% of FY24 revenue, poses a significant risk to its earnings if orders do not recover or drop further.

Earnings Decline

Despite gains from asset sales, a significant decline in earnings is anticipated due to a sharp drop in order momentum from its key customer.

Order Flow Challenges

The outlook for FY25F remains challenging as the order flow from its key customer remains weak.

Aztech Global Ltd. Business Overview & Revenue Model

Company Description

Aztech Global Ltd., together with its subsidiaries, engages in the research, development, engineering, and manufacturing of IoT devices, data-communication products, and LED lighting products in Singapore, North America, China, Europe, and internationally. It operates through two segments, Manufacturing, and Distribution and Trading. The company provides consumer electronics and consumer healthtech products, including smart security cameras, smart home and automation products, smart wearables, etc. It also offers LED lighting products for use in residential, commercial, and industrial applications; and designs and develops smart lighting systems. In addition, the company manufactures and sells electrical products, such as kitchen appliances, and other home and living products. Further, it provides original equipment manufacturer, original design manufacturer, joint development manufacturing, and contract manufacturing services to multinational corporations. The company was formerly known as Aztech Global Pte. Ltd. and changed its name to Aztech Global Ltd. in February 2021. Aztech Global Ltd. was founded in 1986 and is based in Singapore. Aztech Global Ltd. is a subsidiary of Azventure Investments Ltd.

How the Company Makes Money

Aztech Global Ltd. generates revenue through the sale of its consumer electronics products, mainly focusing on networking equipment like routers and modems. The company's revenue model is largely based on direct sales to consumers through various distribution channels, including online platforms and retail partnerships. Additionally, Aztech Global Ltd. engages in strategic collaborations with telecommunications companies to bundle its hardware solutions with internet services, thereby expanding its market reach and customer base. The company may also explore licensing agreements and OEM partnerships to diversify its income streams and strengthen its financial performance.

Aztech Global Ltd. Financial Statement Overview

Summary

Aztech Global Ltd. demonstrates solid financial health with strong balance sheet metrics and effective cash flow management. Despite a decline in revenue growth, the company maintains profitability through efficient operations, low leverage, and a strong equity base.

Income Statement

Aztech Global Ltd. shows a consistent revenue stream with fluctuations in profitability. The gross profit margin has been stable, but net profit margin has slightly decreased over the last year. The revenue growth rate has been negative recently, indicating a decline in sales. EBIT and EBITDA margins are strong, indicating efficient operations despite the revenue dip.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, reflecting financial stability and low leverage risk. The return on equity is healthy, suggesting good profitability relative to shareholder investment. High equity ratio points to a strong equity base compared to total assets.

Cash Flow

Cash flow from operations is strong and growing, with positive free cash flow indicating efficient cash management. The free cash flow to net income ratio is favorable, suggesting the company is turning profits into cash effectively. However, the free cash flow growth rate has slowed, indicating potential future cash flow constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	621.61M	896.29M	820.24M	624.36M	484.27M
Gross Profit	141.57M	148.86M	204.66M	155.47M	138.19M
EBITDA	91.29M	133.56M	90.27M	95.85M	76.31M
Net Income	70.53M	100.01M	67.19M	74.38M	55.73M
Balance Sheet
Total Assets	471.21M	597.27M	541.39M	518.20M	300.25M
Cash, Cash Equivalents and Short-Term Investments	311.26M	272.02M	226.22M	201.51M	11.46M
Total Debt	17.13M	22.20M	8.45M	18.03M	37.37M
Total Liabilities	132.12M	252.33M	257.39M	225.23M	258.63M
Stockholders Equity	339.09M	344.94M	284.00M	292.97M	41.62M
Cash Flow
Free Cash Flow	109.91M	86.72M	99.96M	37.11M	17.14M
Operating Cash Flow	113.30M	90.99M	106.42M	41.90M	28.57M
Investing Cash Flow	29.05M	-13.70M	-34.45M	-4.10M	-10.70M
Financing Cash Flow	-83.08M	-43.48M	-75.36M	151.92M	-20.66M

Aztech Global Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:8AZ, the sentiment is Positive. The current price of 0.67 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.60, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 68.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:8AZ.

Aztech Global Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8AZ	75 Outperform	S$517.10M	12.93	12.72%	16.42%	-50.75%	-61.46%
Sector *	62 Neutral	£501.04M	27.14	0.85%	2.82%	3.88%	-21.07%
AWX	57 Neutral	S$479.46M	41.80	2.87%	―	4.60%	―
BBW	―	S$477.00M	16.64	86.78%	―	―	―
E28	66 Neutral	S$674.80M	18.18	8.89%	1.64%	6.93%	14.19%
JLB	64 Neutral	S$313.84M	28.29	7.60%	0.32%	47.45%	51.05%
MZH	64 Neutral	S$492.06M	63.98	3.50%	0.87%	22.66%	83.49%

Aztech Global Ltd. Corporate Events

Aztech Global Ltd. Announces Strategic Sale and Leaseback of Dongguan Property

Aztech Global Ltd. has announced a sale and leaseback agreement for its property in Dongguan, China, through its subsidiary Aztech Communication Device (DG) Ltd. The transaction involves selling the property for RMB 41 million and leasing back a portion for ten years at RMB 20 million. This strategic move allows Aztech DG to optimize its manufacturing operations in China without the burden of maintaining the entire property and mitigates risks associated with land use rights.

The most recent analyst rating on (SG:8AZ) stock is a Hold with a S$0.90 price target. To see the full list of analyst forecasts on Aztech Global Ltd. stock, see the SG:8AZ Stock Forecast page.

Aztech Global Secures Spot in 2025 Fortune Southeast Asia 500

Aztech Global Ltd. has been recognized for the second consecutive year in the Fortune Southeast Asia 500 list for 2025, underscoring its commitment to providing innovative solutions in the IoT and data-communication sectors. This achievement highlights Aztech’s strategic efforts in enhancing its manufacturing capabilities in Malaysia and leveraging global trends to drive growth, reflecting its dedication to operational agility and cost management, which are pivotal for delivering sustainable value to its stakeholders.

The most recent analyst rating on (SG:8AZ) stock is a Hold with a S$0.90 price target. To see the full list of analyst forecasts on Aztech Global Ltd. stock, see the SG:8AZ Stock Forecast page.

Aztech Global Ltd. Wins Prestigious Enterprise Award for Innovation and Community Impact

Aztech Global Ltd. has been awarded The Enterprise Award at the Singapore Business Awards 2025, recognizing its innovation, agile leadership, financial resilience, and community impact. The company is committed to enhancing its design and manufacturing capabilities, expanding its global customer base, and supporting community initiatives, reflecting its strategy of creating value through innovation and responsible growth.

The most recent analyst rating on (SG:8AZ) stock is a Hold with a S$0.90 price target. To see the full list of analyst forecasts on Aztech Global Ltd. stock, see the SG:8AZ Stock Forecast page.