AZTECH Global’s : 8AZ 0% net profit rose 134.6 per cent on year in the second half of 2023 to S$57.1 million, bringing the group’s net profit for the full year to a record S$100 million.

In a bourse filing on Thursday (Feb 22), the technology solutions provider said higher revenue, greater economies of scale, interest income and net fair-value gain on foreign exchange contracts led to higher net profit for H2 2023.

Earnings per share for H2 rose 134.9 per cent on year to S$0.074, from S$0.0315 in the prior-year period.

A final dividend of S$0.05 per share was proposed, higher than the S$0.015 per share final dividend in FY2022. Including the interim dividend of S$0.03 per share, the total dividend for FY2023 amounts to S$0.08 per share, an improvement from S$0.045 per share in FY2022.

Revenue for H2 climbed 11.4 per cent on year to S$507.7 million. For the full year, revenue was up 9.3 per cent to S$896.3 million.

Net profit for the full year rose 48.9 per cent on year to S$100 million, which the group attributed to the stronger revenue.

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Aztech Global’s chairman and chief executive, Michael Mun, said: “The group has achieved a record net profit of S$100 million, and we are delighted to share the rewards with shareholders by increasing total dividend for FY2023 to eight (Singapore) cents per share. Our expansion in Malaysia has provided us the foundation to seize new opportunities in the years ahead.” 

Aztech commenced full-scale production at a 300,000-square-foot manufacturing facility in Johor in the third quarter of last year, which it said will support its growth, business continuity needs as well as the production diversification requirements of its customers.

In terms of outlook, Aztech noted that business prospects for the next six to 12 months are expected to be “challenging”, with geopolitical tensions and inflationary costs likely to persist in 2024.

“The group remains committed to the disciplined management of its operations, costs and balance sheet. It will continue to adapt and innovate novel solutions to capture new customers and opportunities in the growing IoT (Internet of Things) market,” it said.

Aztech said it secured new customers during the year, including companies dealing with smart baby monitoring, kitchen scrap management, healthtech wearables and respiratory monitoring devices. Its order book currently amounts to S$333.9 million.

Aztech had a net cash balance of S$249.8 million as at Dec 31, 2023. Net asset value per share rose to S$0.45, up from S$0.37 a year earlier.

The counter closed unchanged at S$0.87 on Thursday, before the results announcement.