AEM - CGS-CIMB Research 2022-03-15: To Benefit From Intel’s Investment In Europe

AEM - To Benefit From Intel’s Investment In Europe

  • Intel continues its expansion plan and on 15 Mar 2022 announced possibly up to €80bn investment in Europe over the next decade.
  • We expect AEM (SGX:AWX) to benefit from Intel’s expansion, as the latter should translate into demand for its test handler (TH) products.
  • We assume AEM will remain the sole TH supplier for Intel’s current testing methodology.
  • Reiterate ADD call on AEM; target price unchanged at S$6.85. Our target price for AEM is based on CY23F P/E of 15.62x, 10% premium (given our FY21-24F EPS CAGR expectation of 15.4%) to AEM’s 2 standard deviation above FY17-21 historical average (7.4x) forward P/E multiple of 14.2x.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

William TNG CFA CGS-CIMB Research | 2022-03-15
SGX Stock Analyst Report ADD MAINTAIN ADD 6.850 SAME 6.850

Read also CGS-CIMB's most recent report:
2022-08-15 AEM - What Happens In FY24F?

Check out the most recent target prices at AEM Target Prices. Listing of analyst research reports at AEM Analyst Report.

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