Production And Customers’ Demand Remain Intact
We hosted a conference call with Aztech’s management team. The key takeaways are: a) its manufacturing plant in Dongguan has not been affected by the recent COVID-19 outbreak, b) production in Malaysia has seen limited impact from the tightened MCO, and c) Aztech continues to see healthy demand from its key customers, with orders going as far as 2022. Further improvement in profitability track record should help Aztech rerate upwards. We maintain BUY and target price of S$1.86.