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Aztech management knew more information than all of us (analyzing TA, PE, charts, whatever). They are accumulating and waiting for the cheong...to make $$, so that they can buy Lamborgini.
ericsim,
CWQuah has analysed the results very well.
3Q07 results were abit disappointing. However, if mgmt can implement the cost control measures and FX hedging quickly, I believe FY07 eps should still come in at about 4.2 - 4.5cts. At current price of 38 ct, it represents a P/E of 8.4X to 9X which is not too demanding.
Open mkt purchases by Directors and share buy backs are encouraging....but if buying in at this price is not going to impact your average too much, I would rather wait and see how they implement their plans and if there is an opportunity to pick up at even lower price; given the current mkt volitility.
Just went thru the qtrly report. It looks like while revenue growth is still achieved, cost control, currency hedging and trade receivables/payables management will be more essential to its future profit growth. In essence, the company is developing in the right direction, just that cost containment needs to be more stringent while it strives for growth.
Net operating cashflow in comparison with same 3-mth period from Jul-Sep last yr has worsened slightly, but comparing with same 9-mth period as last yr, they've actually increased cashflow by 4m, hopefully they can improve in the final qtr.
Would appreciate if someone else with better FA skills could comment or add further insights.
Looking at directors' actions, thus far they seem to be very supportive of Aztech, one whole barrage of stock buying by 6 directors (though I'd prefer they bought even more, one of them bought only 10 lots). Also glad to see further share buybacks by Aztech.
Hi Shplayer, what's your expertise opinion based on FA, should accumulate some more?? i doubt the price will drop further. AZ seem full of confidence - keep on buying back share. Thanks in advance.
DBS
Results Snapshot
Aztech Systems: HOLD; S$0.38; Price Target: S$ 0.44 (Prev S$ 0.50)
Aztech's 3Q07 net profit at S$3.6m was down 29% y-o-y and 10% below our expectations of S$4m.Gross
margins were substantially lower due to sharp slow down in orders from a key customer for microprocessor
test boards, which had enjoyed significantly higher margins. Operating costs increased due to higher wages
in China and appreciation of Chinese currency versus USD.Inventory days are higher due to higher sales
orders in traditionally strong 4Q07.
Good point. Seems that most of their foreign receipts and payments are in USD, they call it a 'natural hedge' 
. This certainly poses a small problem. Still holding, thanks for trying to help us all make some sense of what's happening now!
. This certainly poses a small problem. Still holding, thanks for trying to help us all make some sense of what's happening now!
A few things may not be in favour for Aztech currently:
1. Impact of USD depreciation - need to see if Aztech has hedged against this especially for last qtr when Fed Reserve cut rates by 0.5%. It may have some impact on one of the contracts to supply US$50m worth of modems to the US market. See attached link. http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_E453FB851744F2F448257361003C1455/$file/PReleaseAztechGrowthInADSLModems.pdf?openelement
2. Electronics sector downturn last qtr - still weak apparently.
3. General market sentiments in STI and DJIA - short-term bearish till end of Oct 07, looks like most of the smaller shareholders are withdrawing their exposure.
Thus far the saving grace is the 39.5c support, no massive selling volume, and increasingly oversold signals from the RSI, William %R and stochastics indicators. MACD still going down though, but volatility seems to be going down too. Looks like it will consolidate somewhere around 39.5 - 40.5c in the short term.
Ok... Has anyone got any idea as to what's up (or more to the point, down) with this counter? Solid fundamentals, generally good news (the PC-less Skype DECT seems pretty promising), but appears to be downtrending. Vested at today's price, not sure if should let go.
Wonder if there'll be a shocker come Oct 25, when the Q3 earnings are released
Wangxiang could be play next to 60c...personnally vested alot fr 33.5 to 37.5c..sell off some 20%...but BB support at 44c..be careful..this one 75% confident..buy at your risk..forget Aztech awhile..look eslsewhere...before the next big shock arrive and u got stuck here..
Where you heard from???btw..already out of this counter...i dont stay too long for my money to rot here...loss a little...then the other conter cheong to make up the loss alreadi..this one quite unexpected...if not for this Credit Agricole sell down it will be fine,,,becareful they may still got alot to sell..
I observe this Credit Agr,,have been selling other counter...which are solid ones,,,dont know y they sell...could be to cover their losses else where...i think..but Aztech long term ok,,,but for the coming 25/10 i think the result may not be too impressive..will keep in view..this one. since alot of interest shown.
Good news on the way.
http://www.listedcompany.com/ir/aztech/newsroom/dateofreleaseofthirdquarterfinancialstatement.pdf
Heard that earning is good
This counter is not too bad actually, only that the main market sentiments may affect its price (market correction seems to be on its way within these 2 wks), and currently it's being forgotten with the other penny plays getting hot the last few days. Netelusion anyone?? :P
Next few days expect it to dip downwards to around 40.5-41.5c, key supports at 41.5c and 39.5c. Ditch if it breaches 39.5c on heavy selling.
Once the storm is over, just ride it up. Resistance at 44.5c.
Aztech cheonggggg?????????
so what can we do? wait lor.
Good luck for those vested
AZTECH SYSTEMS LTD
(Incorporated in Singapore on 6 August 1986)
(Company Registration Number: 198601642R)
ANNOUNCEMENT
DATE OF RELEASE OF THIRD QUARTER FINANCIAL STATEMENT
The Board of Directors of Aztech Systems Ltd (the ?Company?) wishes to announce that the
Company will be releasing its financial statement on the results of the Company and of the Group
for the Third Quarter ended 30 September 2007, on
Details of the announcement and the presentation materials will be posted on the Singapore
Exchange website and on the Company?s website (
By Order of the Board
Thursday, 25 October 2007.www.aztech.com).Pavani Nagarajah
Company Secretary
Aiyah, no point talking abt share buy back. LMA has been talking about share buy back many times. After it was authorised at its mtg, LMA mg did not activate it at all. Share buy back will not caused Aztech of rocket north, la!! (Not vested - just to caution those who think Aztech would rocket north just because of share buy back!)
Daily Share Buy-Back Notice http://info.sgx.com/webcorannc.nsf/0357d11048060bb84825735f0028e25b/e874121af42d78e6482573700034f239?OpenDocument
Sadly, most shares of yesteryears (Aztech is one of them) have not fully recovered to their previous peaks. Imagine Aztech is still a penny stock despite being in the mkt at least for the past ten years (pse check me if I am wrong.) It seems the recovery has been selective for stocks of yesteryears, with the play usually on new stocks. There are just too many "orphan" and "forgotten" shares on SGX. Sigh!!!! Sorry, NOT vested - my apologies to those who are vested. and who may be "offended" by this posting.
even u shout loud loud.......it went down. You better don't shout liao