AEM - CGS-CIMB Research 2022-05-06: Still On Track For Multi-Year Product Ramp-Up

AEM - Still On Track For Multi-Year Product Ramp-Up

  • AEM (SGX:AWX) released its 1Q22 business update on 5 May 2022. 1Q22 revenue grew 226.4% y-o-y to S$261.9m (1Q21:S$80.2m) while net profit grew 205.6% y-o-y to S$40.8m (1Q21:S$13.3m), above our and Bloomberg consensus full-year expectations.
  • We reflect AEM’s new FY22F revenue guidance of S$700m-750m (previously S$670m- 720m). However, reflecting investors’ concerns over inflationary cost pressures, we assume a more prudent net profit margin of 15.8% for FY22F (previously 17.2%), guided by AEM’s 1Q22 net profit margin of 15.6% (4Q21: 17.2%, FY21: 16.3%). Hence, we lower our FY22F EPS by 4.3% and FY24F EPS by 0.1%.
  • We reiterate our ADD call and target price of S$6.85 for AEM based on an unchanged 15.62x (10% premium to AEM’s 2 standard deviation above its FY17-21 historical average forward P/E multiple of 14.2x) at an 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 @

William TNG CFA CGS-CIMB Research | 2022-05-06
SGX Stock Analyst Report ADD MAINTAIN ADD 6.850 SAME 6.850

Previous report by CGS-CIMB:
2022-04-06 AEM Holdings - February 2022 Global Semicon Sales Grew 32.4%

Target prices by 2 other brokers at AEM Target Prices.
Listing of broker reports at AEM Analyst Report.

Relevant links:
AEM Share Price History,
AEM Announcements,
AEM Dividends & Corp Actions,
AEM News Articles


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