DESPITE its profit dropping from S$57.1 million to S$23.9 million in the second half of 2024, Aztech Global almost doubled its dividend for the full year ended Dec 31.
The Internet of Things device manufacturer said on Tuesday (Feb 25) that it was rewarding shareholders after accumulating a cash reserve of S$311.3 million due to its disciplined approach towards cash and capital management over the years.
Aztech Global declared a total dividend of S$0.15 per share for the financial year, an increase of 87.5 per cent from the S$0.08 per share dividend distributed in 2023.
Group revenue fell 51.1 per cent to S$248.4 million in H2, as the group recorded a lower sales volume of devices and data communication products due to decreased demand from customers, it said.
Earnings per share fell to 3.1 Singapore cents, from 7.4 Singapore cents in the year-ago period.
For the full year, net profit stood at S$70.5 million, down 29.5 per cent from S$100 million. Revenue declined 30.6 per cent to S$621.6 million.
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The group said: “Amid rising trade restrictions, geopolitical tensions and global economic uncertainties, the group is encountering some demand volatility from customers. (It) is prioritising expanding its customer base, strengthening relations with existing customers, managing its cost as well as enhancing its design and manufacturing capabilities.
“It will continue with digital transformation and automation to optimise operational efficiency.”
Aztech Global said that five new products entered commercial production in the final quarter of 2024.
In addition, the group secured seven new customers during the year with commercial production expected in the current financial year.
“The group will also explore merger and acquisition opportunities to expand its customer base,” it said.
Aztech Global declared a dividend of S$0.10 per share, comprising a final ordinary dividend of S$0.03 per share totalling S$23.2 million and a special dividend of S$0.07 per share totalling S$54 million. It also declared an interim dividend of S$0.05 per share.
The counter closed flat at S$0.725 on Tuesday, before the announcement.
