Aztech Global H1 net profit drops 65.5% to S$16.1 million on subdued customer demand

[SINGAPORE] Aztech Global’s net profit plunged 65.5 per cent to S$16.1 million, from S$46.7 million, for the first half ended Jun 30, 2025. Similarly, revenue declined by 50.3 per cent to S$185.4 million in H1 2025, from S$373.2 million in H1 2024, indicated its Tuesday (Jul 22) evening bourse filing.

The weaker net profit and revenue performance was primarily due to subdued customer demand, the manufacturer said.

Earnings per share stood at 2.08 Singapore cents for the half year, down from 6.04 cents in H1 2024.

An interim dividend of one Singapore cent per share was declared, compared to five cents per share in the year-ago period.

“While macroeconomic and geopolitical uncertainties may persist, we will sharpen our operating model and seize emerging opportunities,” said Michael Mun, Aztech’s executive chairman and chief executive officer. “The interim dividend demonstrates our commitment to shareholders while maintaining a balanced approach to operational needs.” 

The group reported a net operating cash outflow of S$8.8 million in the first half of 2025, which it attributed to higher working capital needs with the increase in trade receivables and inventories. As at end-June, its net cash position came in at S$214.5 million.

Its net asset value per share was 35 Singapore cents as at Jun 30, 2025, lower than 44 cents as at Dec 31, 2024. This was largely because of the payment of final and special dividends amounting to S$77.2 million in April 2025.

The group’s customer diversification and growth has gained traction, Aztech said. It has secured 12 new product orders and added seven new customers year to date.

It has also consolidated its production capacity and capabilities in Pasir Gudang, Johor, and sold its premises in Gelang Patah, Johor for RM28.7 million (S$8.7 million).

“The sale is expected to yield a net gain of RM13.7 million,” Aztech said.

It added that to better position itself to seize opportunities amid the increasingly complex macroeconomic environment and geopolitical tensions, Aztech will focus on strengthening its customer base; diversifying its supplier network; leveraging its dual-site manufacturing footprint; and maintaining a disciplined approach to resource management.

The counter closed at S$0.605 on Tuesday, up S$0.005 or 0.8 per cent, before the announcement.