Latest news with #AureliusTechnologies
The Star
3 days ago
- Business
- The Star
Aurelius Technologies growth momentum intact
Maybank IB said the company's management has flagged that continued US dollar weakness could exert pressure on margins. PETALING JAYA: Aurelius Technologies Bhd 's strong demand from new and existing customers is anticipated for all its three core segments in the coming quarters, although the US dollar weakness could exert some pressure on margins. Maybank Investment Bank Research (Maybank IB) said from the company's latest results briefing, it gathered that growth momentum from new and existing customers is expected across all three core segments – communications and Internet of Things (IoT), electronic devices and semiconductor components (SC), in the coming quarters. Plant utilisation across plant one (P1) to P3 has reached about 90%, while the latest facility, P5, is currently operating at 10% utilisation rate (UR). That said, the research outfit said management has flagged that continued US dollar weakness could exert pressure on margins but the impact may be offset by higher volume loadings as demand scales up. 'Our back-of-the-envelope calculations suggest that every 5% depreciation of the US dollar against the ringgit could reduce revenue by about 5% and net profit by around 4%. Aurelius Technologies is a provider of manufacturing solutions for industrial electronic products. The company's long-standing engagement with a new customer is starting to bear fruit, with mass production and material contribution expected as early as the third quarter of this financial year (3Q25). For its SC customer, momentum appears to be picking up as UR has reached about 80% to 85%, it noted. Separately, Aurelius Technologies is also installing customer-consigned infrastructure to support rising demand as discussions for additional production lines are ongoing. 'With overall UR running at near full capacity, we believe there is a realistic opportunity for the company to expand capacity further, potentially by adding new lines in P5,' Maybank IB said, noting that it is lifting its 2026 estimate earnings forecasts by 5%, driven by more favourable product mix while adjusting 2027 estimate by minus 3% to reflect slightly slower gestation period of new capacity. Maybank IB is reiterating a 'buy' call on Aurelius Technologies, underpinned by its exposure to the ongoing global supply chain diversification and its strong expertise in IoT and automotive modules. Key risks include weaker than expected demand, loss of key customers, ringgit strength and production ramp-up delays. For the first quarter of the financial year ended March 31, 2025, the company's net profit rose to RM16.10mil from RM15.73mil in the previous corresponding period, while revenue improved RM147.85mil from RM125.70mil a year earlier. In a filing with Bursa Malaysia on its first-quarter performance, Aurelius Technologies said the communication and IoT products contributed RM124.5mil (84.2%), electronics devices contributed RM15.2mil (10.3%) and semiconductor components contributed the remaining RM8.1mil (5.5%). 'In the preceding year's corresponding quarter, the group recorded a revenue of RM125.7mil. 'Communication and IoT products contributed RM95.2mil (75.7%), electronics devices contributed RM25mil (19.9%) and semiconductor components contributed the balance of RM5.5mil (4.4%).'
Yahoo
6 days ago
- Business
- Yahoo
Aurelius Technologies Berhad (KLSE:ATECH) Has Affirmed Its Dividend Of MYR0.036
Aurelius Technologies Berhad (KLSE:ATECH) has announced that it will pay a dividend of MYR0.036 per share on the 15th of July. This means the dividend yield will be fairly typical at 2.6%. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Prior to this announcement, Aurelius Technologies Berhad's earnings easily covered the dividend, but free cash flows were negative. No cash flows could definitely make returning cash to shareholders difficult, or at least mean the balance sheet will come under pressure. Over the next year, EPS is forecast to expand by 38.8%. If the dividend continues on this path, the payout ratio could be 65% by next year, which we think can be pretty sustainable going forward. View our latest analysis for Aurelius Technologies Berhad The dividend has been pretty stable looking back, but the company hasn't been paying one for very long. This makes it tough to judge how it would fare through a full economic cycle. The annual payment during the last 3 years was MYR0.04 in 2022, and the most recent fiscal year payment was MYR0.087. This works out to be a compound annual growth rate (CAGR) of approximately 30% a year over that time. Aurelius Technologies Berhad has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Over the past five years, it looks as though Aurelius Technologies Berhad's EPS has declined at around 28% a year. A sharp decline in earnings per share is not great from from a dividend perspective. Even conservative payout ratios can come under pressure if earnings fall far enough. On the bright side, earnings are predicted to gain some ground over the next year, but until this turns into a pattern we wouldn't be feeling too comfortable. We should note that Aurelius Technologies Berhad has issued stock equal to 10% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Aurelius Technologies Berhad's payments, as there could be some issues with sustaining them into the future. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. We would be a touch cautious of relying on this stock primarily for the dividend income. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Just as an example, we've come across 2 warning signs for Aurelius Technologies Berhad you should be aware of, and 1 of them is a bit unpleasant. Is Aurelius Technologies Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
