- AEM (SGX:AWX) reported record-high half year revenues of S$540.5m in 1H22 (+181% y-o-y, +45% h-o-h). The surge in revenue can be attributed to the ramp up of the new generation SLT (system level test) handlers, burn-in test handlers, increased sales of consumables and tools, as well as contributions from CEI (SGX:AVV).
- - Read this at SGinvestors.io -
- Revenue guidance revised upwards a second time, 6-7% higher at S$750m-S$800m. AEM's guidance hints at a weaker half. 1H22 revenues made up 68-72% of the full year guidance.
Our Thoughts
Growth in test spend continues to be a key driver for AEM.
- - Read this at SGinvestors.io -
- AEM expects that the Test 2.0 market could potentially grow 8x over the next 8 years, in line with VLSI Research’s view that SLT is expected to grow 4.4x faster than wafer sort and functional test in 2020- 2024 on the back of higher test coverage reliability.
- Overall, we think that AEM is well-positioned to ride this trend given its lead in the SLT market.
Supply chain disruptions still likely to weigh on margins.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Lee Keng LING DBS Group Research | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-16
Read also DBS's most recent report:
2024-03-01 AEM - Uncertainties Persist Into 2024.
Previous report by DBS:
2023-11-14 AEM - Stand On The Sidelines For Now.
Price targets by 4 other brokers at AEM Target Prices.
Listing of research reports at AEM Analyst Reports.
Relevant links:
AEM Share Price History,
AEM Announcements,
AEM Dividends & Corporate Actions,
AEM News Articles