AEM Holdings - A Handler For Testing Times
- AEM (SGX:AWX)'s FY21 net profit fell 6.0% y-o-y, was above our/Bloomberg consensus full-year expectations, at 106%/108% of full-year forecasts.
- AEM maintained its FY22F revenue guidance of S$670m-720m and expects to see revenue contribution from new customers from 2H22F onwards.
- We raise FY22-23F revenue forecasts for AEM by 6.0-9.7% as orders from customers remain strong. Operating expenses are reduced by 13.4%-21.8% as we may have been too aggressive in our previous estimates.
- We reiterate our ADD call for AEM but lower our target price to S$6.85 from S$7.90. This is based on 15.62x [10% premium (given our FY21-24F EPS CAGR expectation of 15.4%) to AEM’s 2 standard deviation above its FY17-21 historical average (7.4x) forward P/E multiple of 14.2x] FY23F EPS of S$0.4384.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-28 2022-02-28
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