Aztech Group: A Tiny but Intriguing Conglomerate

With a market capitalisation of just S$75 million, Aztech Group (SGX: 560) is a bona fide small-cap share. But, despite its tiny market value, it could actually be considered a true conglomerate with some five different businesses under its belt.

The company’s perhaps most famous for its electronic products business under its namesake brand Aztech; the company now sells Aztech products in more than 43 countries and supplies major telcos and internet service providers globally. After setting up a research facility in Shenzhen, China, Aztech has started to branch out beyond its traditional product range of networking and broadband products; it is now moving into consumer electronics like vacuum cleaners and juice makers.

Aztech also has a LED Lighting business. This arm of Aztech is currently focused on the business to business (B2B) model and it supplies to many public and commercial projects around the world. It normally markets itself through lighting-trade shows where it can showcase its products to potential buyers.

In its third line of business, Aztech supplies constructions materials. In the company’s own words, it “suppl[ies] materials to Government authorities, construction material stockpile, ready-mix concrete suppliers, pre-cast concrete suppliers as well as for reclamation works.”

With its fleet of bulk vessels, Aztech also provides marine logistics services. That’s the company’s fourth line of business. In it, the company provides ship chartering, ship management, technical management, ship brokering, and crew management services, among others.

Lastly, the company has a food distribution business under the Shiro group. It distributes canned and frozen food. In addition to that, Shiro also focuses on the distribution of premium food items like lobster meat, wagyu beef and foie gras. Let’s not forget the wines as well – Shiro has a wide range of wines that it imports and distributes.

Foolish Summary

Although Aztech is a company with a wide range of business interests, most of its revenue is still coming from its electronics and marine business. It will be interesting to follow how the company grows each of its business in the next decade. If successful, this conglomerate might just be a force to be reckoned with.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.