AEM - DBS Research 2022-08-16: On Track To Beat Records; 1H22 Profit Before Tax Jumped 187% Y-o-y

AEM - On Track To Beat Records; 1H22 Profit Before Tax Jumped 187% Y-o-y

Published:
AEM HOLDINGS LTD (SGX:AWX) | SGinvestors.ioAEM HOLDINGS LTD (SGX:AWX)
  • 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





Advertisement

You May Also Like




SGX Stock / REIT Search

Advertisement

Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement