• RE-ITERATE BUY Entry – 1.28 Target – 1.50 Stop Loss – 1.18
  • Fundamentally strong tailwinds. The recent sell-off among several Singapore technology stocks is a buying opportunity as they continue to benefit from structural tailwinds in Internet of Things (IoT) and data communication products. 
  • Robust orderbook. Aztech’s orderbook stood at S$489mn as at end-1Q21, with the majority of it to be completed by this year. The company has secured new customers from South Korea, Sweden, Australia and the US. This is in addition to its main customer who is a major e-commerce company in the US. 
  • Bullish consensus estimates. Analysts are overall positive on Aztech, with 4 BUYS / 0 HOLD / 0 SELL and a 12-month average target price of S$1.87, implying a 53% upside potential based on the last close price of S$1.22. Meanwhile, our short-term trading target price of S$1.50 implies a more conservative 11x FY2022F EPS of 13.5 Sing cents.
  • Technical rebound. Price is due for a technical rebound as RSI below 40 has previously signalled a short-term bottom to its share price.