MAINBOARD-LISTED Aztech Global posted a 55.7 per cent drop in net profit to S$13.7 million for its third quarter ended Sep 30, 2024, from S$30.9 million in the corresponding year-ago period.
Earnings per share for the quarter stood at 1.78 Singapore cents for the quarter, down from 4 cents in the year-ago period, the tech manufacturer said in a regulatory filing on Tuesday (Oct 29).
Revenue for Q3 fell 41.2 per cent to S$166.7 million, from S$283.4 million the year before.
Aztech Global noted that income tax expense was higher in Q3 last year, due mainly to a one-time deferred tax provision of S$5.5 million, relating to retained earnings from an overseas subsidiary.
No dividend was declared for the quarter.
The weaker Q3 performance follows a relatively strong first-half performance. For H1 this year, Aztech Global reported a net profit of S$46.7 million, up 8.7 per cent from H1 2023.
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The Singapore-headquartered group also provided an update on its financial performance for the first nine months of its financial year ended Sep 30.
For the year to date, it recorded a net profit of S$60.4 million, down 18.2 per cent from S$73.8 million in the first nine months of 2023.
This was due to lower revenue, higher depreciation and net foreign exchange loss, partly offset by higher interest income and lower tax expense.
Revenue for the nine months declined 19.7 per cent on the year to S$539.9 million from S$672 million a year ago, due to lower order volumes.
The group’s net profit margin remained stable at 11.2 per cent.
Aztech Global continued to generate strong net cash from operating activities with improved working capital. As at Sep 30 this year, its net cash position grew by 25.2 per cent on year to S$269.8 million. During the period, the group made total dividend payments of S$77.2 million, relating to its FY2023 final dividend and FY2024 interim dividend.
As at Oct 1, the group secured an order book totalling S$142 million, with most orders scheduled for completion in the current financial year.
“With the lower order book, the group expects a slower Q4 2024,” Aztech Global said. “The group will continue with stringent cost management.”
It plans to focus on enhancing its design and manufacturing capabilities, and increasing and diversifying its customer base, including exploring opportunities for mergers and acquisitions to expand its business.
Still, barring unforeseen circumstances, Aztech Global expects FY2024 to remain profitable.
The counter closed at S$1.03, up S$0.01 or 1 per cent, on Tuesday, before the announcement.
