Analyst William Tng from CGS-CIMB reiterated a Sell rating on Aztech Global Ltd. (8AZ – Research Report) and keeping the price target at S$0.41.
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William Tng has given his Sell rating due to a combination of factors affecting Aztech Global Ltd. The company’s financial outlook for FY25F appears weak, primarily due to a sluggish order flow from its primary customer, which poses a significant risk given the high customer concentration. Additionally, the cautious sentiment in the US consumer market, influenced by trade tensions and economic uncertainties, further exacerbates the challenges Aztech faces.
Despite efforts to diversify its customer base and expand production capabilities, these initiatives are unlikely to contribute significantly to revenue in the near term. The potential for excess inventory at key customers, accumulated during the pandemic, also adds to the uncertainty. While Aztech has the capacity for expansion in Malaysia, the overall outlook remains clouded by these issues, justifying the Sell recommendation.
8AZ’s price has also changed moderately for the past six months – from S$0.700 to S$0.575, which is a -17.86% drop .