KUALA LUMPUR: Aurelius Technologies Bhd is expected to post higher revenue in the financial year 2024 (FY24) on the back of higher contributions from its existing and pipeline of new customers as a result of ramping up operations across its existing factories going forward.

Mercury Securities Sdn Bhd said Aurelius's results were within expectations, achieving 83.0 per cent and 70.8 per cent of its full-year revenue and profit forecasts for FY23, respectively.

"This is supported by the ramping up of operations in Plant 3, enabling the company to increase overall production volume and revenue across all business segments," it said. 

In March 2022, the company commenced production for its newly acquired Customer F, involved in the multi-component integrated circuitry (MCIC) business. 

As of December 2022, six fully automated surface-mount technology (SMT) lines have been commissioned for this customer in its existing Plant 2. 

Utilising its initial public offering (IPO) proceeds, Mercury Securities said the company had ordered line seven further to ramp up the production capability for Customer F. 

"The SMT line is expected to arrive by February 2023. 

"Our estimates assume the second half of 2023 (2H23) to be stronger on the back of higher contributions from customer F, bolstered by increased order uptake with the 6th SMT line fully installed and running at full steam and better efficiency and output with the implementation of the new conveyor system," it said.

Meanwhile, Mercury Securities said Aurelius also plans to upgrade its manufacturing facilities towards Industry 4.0, which involves the automation of its production lines and automated material handling for its EMS business operations. 

This would increase the company's productivity and allow better control of its labour cost going forward.

"We revised our FY24 revenue and earnings upward by 12.4 per cent and 12.5 per cent.

"We maintain a Buy recommendation on Aurelius with a revised target price of RM3.02 based. 

"We like the stock for its attractive expansion plans, customer portfolio diversification from a high-mix-low-volume to medium-mix-medium-volume business, and solid track record," it added.