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UOB KAYHIAN |
UOB KAYHIAN |
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Aztech Global (AZTECH SP) 2024: Results Slightly Below Expectations; Outlook Remains Uncertain
Aztech’s 2024 earnings of S$71m (-30% yoy) missed our expectations by 2%. Revenue fell 31% yoy due to lower sales volume of IoT devices and data-communication products from weaker customer demand. Aztech has declared a final and special dividend totalling 10 S cents per share. Amid rising geopolitical uncertainties, Aztech is facing some demand volatility from customers. Maintain HOLD with a 28% lower target price of S$0.65.
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PropNex (PROP SP) 2024: Focus On Strong 1H25 And 2H25 Results Instead Of Earnings Miss
Although 2024 earnings missed, we highlight that the latter half of 2H24 and 1Q25-todate saw very strong sales from new launches. The Singapore property market outlook remains reasonably solid in 2025, and with PropNex retaining its robust market share, we expect the company to deliver 29% earnings growth this year. The company offers a defensive yield of 6.1% for 2025F, which does not include the potential for further special dividends. Maintain BUY. Raise target price to S$1.30.
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CGS CIMB |
CGS CIMB |
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Credit Bureau Asia Ltd Demand sustained across segments
■ 2H24 PATMI of S$5.4m was below our expectation. The miss was due to higher-than-expected opex for staff incentives and business-related costs. ■ Revenue growth was broad-based across FI and non-FI segments. Employment checks sustained the former; global demand raised the latter. ■ Reiterate Add with TP of S$1.30. Improving regional investment sentiment could lift credit enquiries, while elevated interest rates sustain risk reviews.
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Aztech Global Ltd Order book recovery slower than expected
■ FY24 revenue was 9%/8% below our/Bloomberg consensus expectations, but net profit was in line with our expectations, aided by lower taxes in 4Q24. ■ Final DPS of 3.0Scts was in line with expectations; special DPS of 7.0Scts was a surprise. With interim DPS of 5.0Scts, FY24 DPS was 15.0 Scts. ■ The order recovery we had anticipated may not materialise. We cut our FY25-26F revenue forecasts and downgrade out call to Hold from Add.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Grab Holdings (GRAB US) Slight hiccup; Maintain BUY Maintain BUY;
Trim TP due to lower EBITDA outlook Grab’s 4Q24 results raised concerns on 2 key fronts: 1) a 29% YoY increase in incentives, sparking worries about heightened competition; and 2) Higher FY25 opex leading to EBITDA outlook fell short of expectations. However, we view these spending as tactical rather than indicative of a broader competitive trend. Maintain BUY. Grab’s GMV growth outlook is at the higher end of global peers while valuations remain in line. We trim our FY25 adjusted EBITDA by 23% but it still remains above company’s guidance. Trim TP to USD5.75 from USD6.24.
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Aztech Global (AZTECH SP) Diversifying to new customers
Upgrade to BUY - transition period Aztech FY24 revenue and NPAT dropped 31% and 30% YoY to SGD621.6m and SGD70.5m, respectively, in line with our forecasts. It added 7 new customers in FY24 with commercial production expected in FY25 which will help to negate declining orders from its key customer. Management is still seeking new customers actively to diversify further from its key customer. As a result, we cut our FY24E/25E PATMI estimates by 10% but upgrade to BUY with an improving outlook while also reducing its single customer concentration risk. Our TP is lifted to SGD0.82, pegged to 8x FY25E P/E.
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