Company Background. Aurelius Technologies (ATech) operates predominantly in the electronic manufacturing services (EMS) focusing on industrial electronic products namely, communications and internet of things (IoT) products, electronics devices and semiconductor components.

Prospects. (i) Investing additional surface mount technology (SMT) lines to further ramp up the production capability for the semiconductor component manufacturing business. As at 30 Nov 2022, ATech has a total of 6 operational SMT lines and automated robotic testing facilities. (ii) Expansion of production facilities with the new manufacturing plant to meet customer demands. (iii) Upgrading of manufacturing facilities towards Industry 4.0, mainly in software and system integration.

Financial Performance. In 9MFY23, ATech reported a higher revenue of RM345.2m (+32.4% YoY) with a PAT of RM24.4m (+44.1% YoY). This was mainly attributed to the expansion of the new electronics device product portfolio, the contribution from scaling-up of production volumes and production process improvements together with the implementation of new infrastructure and product diversification. As at 12 Dec 2022, the group has secured an order book of RM360m.

Technical Analysis. ATech may trend higher after it broke above the key RM2.05 resistance and hit its 10-month high in the past few sessions. In view that the 20-day and 50-day EMA lines are starting to turn upwards, a positive outlook can be expected here. A bullish bias may emerge above the RM2.05 level, with stop-loss set at RM1.93, below the 20-day EMA. Towards the upside, the nearterm resistance level is seen at RM2.40, followed by RM2.60.

Source: AmInvest Research - 9 Jan 2023