Avi-Tech Holdings (1R6) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 13.1% YoY to S$34.9m and profit for the year increased 3.8% to S$3.3m, despite higher operating costs.

• Manufacturing and PCBA Services and Engineering Services drove growth; a final dividend of 1.0 cent per share was proposed.

Financial highlights

• Gross profit increased to S$8.0m from S$7.8m; gross margin fell to 22.9% from 25.2%, pressured by higher electricity costs.

• Profit before income tax rose 11.2% to S$4.1m; higher fixed-deposit interest income was partly offset by unrealized FX losses on USD and RMB movements against SGD.

• Basic and diluted EPS were 1.90 cents, versus 1.84 cents in FY2022.

Outlook and guidance

• FY2024 outlook remained cautiously optimistic but vigilant, with plans to prioritize customer responsiveness, resource optimization and cost management.

• Singapore FY2023 GDP growth was projected at 0.5%–2.5%, below 3.6% in 2022; global demand weakness and China’s economic deceleration weighed on prospects.