KE: Aurelius Technologies – BUY TP RM2.13

We maintain our BUY call and TP of MYR2.13 for ATECH, pegging its CY23’s EPS to a PER of 15.4x, following an investor briefing with the company recently. Our PER peg includes a 10% premium to ATECH’s EMS peers’ CY23 PER average of 14.0x, to reflect ATECH’s robust earnings growth prospects vis-a-vis its peers, its growing exposure to higher value-added MCICs, as well as its operational resilience, owing to its low dependence on foreign labour (unlike its other domestic listed EMS peers).