Tech Manufacturing Services - CGS-CIMB Research 2022-07-29: Sequential Improvement Expected In 2H22

• We expect most tech manufacturing companies under our coverage to report y-o-y revenue and net profit growth for 2Q22F/1H22F.
• Margin pressure/demand trend will remain key areas of concerns. In our view, most companies should experience stronger h-o-h net profit in 2H22F.
• For 2Q22F, we expect AEM (SGX:AWX) to show the best y-o-y net profit growth, while Frencken (SGX:E28) and ISDN (SGX:I07) could see q-o-q and y-o-y net profit declines.
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AEM (SGX:AWX) 2Q22F Earnings Preview

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• We note that AEM has adopted a proactive inventory management approach and has built up a prudent level of inventory to support production for its key customer. We think AEM’s 2Q22F net profit could be flat q-o-q to S$39.6m, a 2.9% q-o-q decline.

UMS (SGX:558) 2Q22F Earnings Preview

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William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-07-29 SGinvestors.io

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