Aurelius Technologies – FY22 results beat expectations (ATECH MK, CP MYR1.93, BUY, TP MYR2.13, Technology)
ATECH’s FY22 CNP of MYR24m (+53% YoY) came in above expectations. We increase our TP to RM2.13 (+11%), pegged to a higher PER of 15.4x that includes a 10% premium (maintained) to its domestic and regional EMS peers’ CY23 PER average of 14.0x. The PER premium reflects ATECH’s robust earnings growth prospects vs. its peers, its growing exposure to the higher value-added MCICs, as well as its operational resilience, owing to its low dependence on foreign labour, unlike its other local peers.