Aztech Global is a designer and manufacturer of IoT devices and data-communication products across diverse segments including security, consumer, communications, health-tech, industrial and automotive. Aztech Global is primarily involved in research and development, design and engineering in the manufacturing, testing and packaging of the electronics value chain.
1. What is Aztech’s business and some of its key segments?
Aztech designs and manufactures Internet of Things (IoT) devices and data communication products across diverse market segments, including security, consumer, communications, health-tech, industrial and automotive. It is primarily involved in the R&D, design and engineering in the manufacturing, testing and packaging of the electronics value chain. It serves a global customer base spanning blue-chip companies to technological start-ups in over 20 countries. It has, in recent years, developed its proprietary “Kyla” brand of smart lighting and surveillance solutions enabled by artificial intelligence (AI) to meet broader customer needs.
2. Can you elaborate on Aztech’s recent financial performance, particularly the key highlights from 1HFY2025 results?
For the 1HFY2025 ended June 30, Aztech achieved revenue of $185.4 million and net profit of $16.1 million. Revenue and net profit had declined by 50.3% and 65.5% respectively compared to the same period last year primarily due to subdued customer demand. The group recorded improved sequential performance for 2QFY2025 with revenue of $143.4 million and net profit of $14.6 million, delivering a net profit margin of 10.2%. As of June 30, the group’s net cash position remained strong at $214.5 million.
3. Aztech has secured seven new customers from consumer, health-tech, security and industrial segments since the start of the year. How will these new customers contribute to the company’s revenue growth and customer base?
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As part of its customer diversification strategy, Aztech actively engages with customers across the six key segments to co-create tailored solutions aligned with their goals. The customer diversification strategy, driven by ongoing dialogue and market insight, have gained traction and is strengthening long-term relationships.
Once a customer is secured, the focus shifts to aligning technical requirements and refining the design for manufacturability through close collaboration before entering the new product introduction (NPI) stage, where prototypes are built, tested and optimised. A successful pilot run then confirms production readiness, enabling a smooth transition to mass production with consistent quality, efficiency and delivery.
Along with the onboarding of the seven new customers, Aztech has secured a total of 12 new product orders, including 3D medical navigation device, AI occupancy sensor, AI-controlled cat flap and a smart air purifier year to date.
The new wins are from the consumer, health-tech, industrial and security segments, with commercial production due to start from 2HFY2025.
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The R&D team, together with the business development and manufacturing teams, is actively collaborating with new customers on pipeline development. While contribution from these new accounts will take time to scale up, it is broadening Aztech’s customer base as well as marking its venture into the exciting AI-driven IoT arena.
4. Does Aztech have any dividend policy?
Aztech does not have a fixed dividend policy. The declaration and payment of future dividends may be recommended by its board of directors at their discretion, after considering several factors. The board has expressed intent to recommend dividends of at least 30% of the group’s net profit after tax since FY2021.
From FY2021 to FY2023, Aztech has paid out 52%-62% of its net profit as dividends, well above its 30% commitment. In 2024, Aztech achieved a record payout of 15 cents a share or 164% of FY2024 net profit through the return of surplus cash to shareholders in the form of special dividends (7 cents per share), in addition to ordinary dividends (8 cents per share). This reflected Aztech’s strong cash generation and disciplined capital management over the years. In demonstrating commitment to shareholders, the board has declared an interim dividend of 1 cent per share.
5. With rising demand for smart home and IoT products, how is Aztech positioning itself to capture long-term growth?
Aztech is positioning itself to capture long-term growth in smart home and IoT products by progressively improving its technological and production capabilities. It is developing its AI competencies to support customer requirements for intelligent, data-driven products, while deepening its design, R&D and data analytics expertise. These advancements enable Aztech to work closely with customers to integrate AI-powered features, enhance product functionality, and support emerging use cases.
In parallel, Aztech continues to invest in smart manufacturing and digital transformation to improve operational efficiency and meet the evolving needs of the smart home and IoT market. These efforts will strengthen Aztech’s position as a full-fledged electronics design and manufacturing solutions provider for a wide range of applications — from energy efficiency and automation to security — as demand for smarter, connected devices continues to accelerate.
6. What is Aztech’s strategy to remain competitive in the fast-evolving IoT and smart home markets?
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Aztech’s strategy focuses on deepening its role as a technology-enabled manufacturing partner, supporting customers with faster product realisation, scalable production and agile response to evolving market needs.
To stay competitive in the IoT and smart home segments, it is:
• Investing in design-for-manufacturability and NPI capabilities to help customers accelerate time-to-market for increasingly complex, compact, and feature-rich devices.
• Expanding smart manufacturing and automation across its facilities to support volume flexibility, consistent quality and real-time production insights.
• Building AI capabilities in production support to progressively enable data-driven testing, predictive quality assurance and intelligent device traceability — key to supporting the emergence of connected products; and
• Collaborating closely with customers and component partners to manage supply chain constraints, ensure regulatory compliance and support region-specific requirements.
This multi-pronged approach positions Aztech as a dependable, future-ready electronics design and manufacturing solutions partner for global and niche brands navigating the fast-paced, innovation-driven IoT and smart home markets.
7. In FY2024, about $556.7 million or 90% of Aztech’s revenue came from two external customers and the balance came from the remaining customers. Does Aztech have any plans to diversify its customer pool and reduce potential concentration risks?
Aztech has been actively executing a customer diversification strategy to reduce concentration risks. This effort has started to gain traction, as seen from recent customer wins and new product orders secured from a broader customer base.
Moving forward, the business development team will focus on acquiring and deepening relationships with new and existing customers to secure projects with recurring revenue potential, supporting long-term growth and a more balanced revenue mix.
8. What are some of the key environmental, social, and governance (ESG) factors that are material to Aztech and how can they create long-term value for your shareholders?
Aztech’s sustainability strategy is shaped by global megatrends and explored through plausible climate scenarios. The group’s success relies on its ability to strengthen operational resilience amidst diverging ESG regulatory framework. It recognises the importance to transition to a low carbon and circular economy, as it enables the reduction of resource consumption, improve product quality, enhance competitive edge, and create long-term business value.
Along with steady progress in reducing Scope 1 and 2 emissions, Aztech is working closely with its business partners to understand and reduce the value chain’s Scope 3 emissions. This provides opportunities to strengthen Aztech’s position as net-zero business partner of choice and enable sustainable growth.
9. What are some ESG metrics used? How is Aztech performing based on those metrics?
In 2024, Aztech established climate action 2050 roadmap that is science-based and data-driven. The Sustainable & Lean Operations Initiative is driving the decarbonisation efforts and it is committed to procure and match electricity consumed in its manufacturing facilities with 100% renewable energy by 2030. Its inaugural Scope 3 emissions mapping and disclosure in the 2024 sustainability report enables Aztech to identify decarbonisation opportunities and participate in voluntary climate action programme and reporting.
Aztech’s Scope 1, 2 and 3 emissions are calculated and reported in accordance with GHG Protocol’s Corporate Accounting and Reporting Standard and ISO 14064-1. The equity share approach was used for the GHG emissions inventory, considering all emissions that Aztech has a share of equity. This approach best reflects its economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. For Scope 3 emissions, the GHG Protocol categories 2, 3, 5, 6, 7, 8 and 13 emission sources have been identified and included based on Aztech’s business activities, data availability and quality.
10. What is Aztech’s value proposition to its shareholders and potential investors? What do you think investors have overlooked?
Aztech offers a strong value proposition through its exposure to AI-driven IoT growth and its versatile R&D and design capabilities, enabling it to co-develop future-ready solutions across diverse market segments.
Backed by a resilient operating model, disciplined execution and a strong net cash position, Aztech remains well-placed to navigate market shifts and invest for long-term growth. Its strong governance ensures transparency and stakeholder accountability.
Its track record of excellence is reflected in numerous achievements such as the Most Transparent Company Award (Technology) 2024 by Sias, Deloitte’s Singapore’s Best Managed Companies 2024, the Fortune SEA 500 (2025 & 2024), and The Enterprise Award at the Singapore Business Awards 2025 — affirming its leadership and credibility in a fast-changing tech landscape.
Raphael Lim is an associate director for research and FinLit at the Singapore Exchange Group
