Avi-Tech Holdings (1R6) H1 2023 earnings summary

Executive summary

• H1 FY2023 revenue rose 14.6% YoY to S$17.768m and profit for the period increased 2.9% to S$2.033m; higher electricity costs and unrealised FX losses limited profit growth.

• All three operating segments recorded revenue growth; manufacturing and PCBA remained the largest contributor at S$9.878m.

Financial highlights

• Gross profit rose 5.8% to S$4.560m, while gross margin fell 2.1 percentage points to 25.7%, reflecting higher electricity costs.

• Profit before tax increased 4.7% to S$2.485m; income tax expense rose 13.6% to S$452k.

• Net FX moved from a S$76k gain to a S$294k loss, amid unfavorable USD and RMB movements against SGD.

Outlook and guidance

• Cautiously optimistic; plans include monitoring market developments, managing resources and costs, responding to customer demand, and exploring potential M&A and partnerships.

• Electromobility, cloud computing, data centres, digitalisation and decarbonisation were cited as potential demand drivers.