Aztech

Aztech: A Straits Times article today highlighted that Aztech's recently-purchased roast meat joint is reported to bring in a four-figure daily profit. On 18 Sep, Aztech paid $4m for the 32-year-old meat shop, together with the strata unit property located at 125 Upper Paya Lebar Road. Assuming a conservative annualized profit of $1,000/day, the acquisition would add an estimated 5.6% to Aztech's FY13 earnings of $6.5m. Prior to the Kay Lee purchase, Aztech's F&B segment was currently small (~1% of revenue), with the group focused on the electronics, materials supply and marine logistics businesses. Going forward, Aztech intends to open at least 10 casual restaurants under the Kay Lee name in the next two years, and does not rule out expanding into the region, including China. At $0.125, Aztech trades at 6.6x P/E and 0.7x P/B.