Earnings per share (EPS) for the period fell by 0.6 cents y-o-y to 1.73 cents.

The lower net profit was due to the higher operating expenses from inflationary cost pressures and the impact of stronger local currencies at locations of the group’s operations, along with net negative foreign exchange impact of $3.1 million during the quarter.

That said, revenue for the period increased by 26.3% y-o-y to $161.6 million due mainly by the 27.7% y-o-y increase in sales of internet of things (IoT) devices and data communication products. The segment achieved revenue of $158.0 million in 1QFY2023, and contributed 97.8% towards the group’s total revenue.

The remaining revenue balance was contributed by the group’s LED lighting and other electrical products, which reported revenue of $3.6 million for the period.

During the 1QFY2023, the group’s ebitda fell by 3.8% y-o-y to $17.6 million while pre-tax profit fell by 2.5% y-o-y to $15.5 million.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/xmh-holdings-posts-six-fold-earnings-increase-65-mil-1hfy2024?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>XMH Holdings posts six-fold earnings increase to $6.5 mil for 1HFY2024</a>

Net asset value (NAV) per share improved by 2.0 cents q-o-q to 39.0 cents as at March 31.

The group’s cash and bank balances stood at $205.1 million as at March 31 while net cash stood at $182.3 million.

The acquisition of its additional 300,000 sq ft manufacturing facility in Pasir Gudang, Johor, Malaysia contributed mainly to the incurrence of capital expenditure amounting to $22.7 million. The facility is expected to begin operations in the 2QFY2023.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/ihh-healthcare-doubles-earnings-rm5321-mil-3qfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>IHH Healthcare doubles earnings to RM532.1 mil for 3QFY2023</a>

As at March 31, the group secured $627.4 million orders. It has since received additional orders of $34.5 million as at May 4, bringing its total order book to $661.9 million. Majority of its order book secured is scheduled to be completed in the FY2023.

Looking ahead, the group says it remains “cautiously optimistic” and expects several factors – including supply chain challenges, inflationary cost pressures, higher interest rates and geopolitical tensions – to impact its business and consumer spending for the rest of 2023.

While continuing to balance and co-ordinate customer orders secured across its manufacturing plants in Dongguan, China and Johor, Malaysia to ensure timely and efficient delivery, the group says it will continue its engagement with customers to grow its portfolio of high quality IoT customers and product offerings to enhance growth resiliency.

“The establishment of the Pasir Gudang facility in Johor, Malaysia will support our growth and production diversification strategy for our customers. Being lean and nimble with appropriate cost control measures in place, the group remains ready to seize meaningful opportunities amidst the bright prospects of the IoT industry,” says Michael Mun, chairman and CEO of Aztech Global.

Shares in Aztech Global closed 0.5 cents higher or 0.61% up at 82 cents on May 4.

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