- With the COVID-19 boom fading, chipmakers are cutting costs and curtailing aggressive spending plans. Intel has already announced plans to cut costs by US$3bn this year and to delay some equipment purchases.
- We suspect that AEM’s margins may be hurt if key customers are not faring well. As a result, we cut our FY23F earnings estimate by 5% and downgrade AEM to SELL as we lower our pegged P/E to 8.5x from 9.0x FY23E P/E resulting in a lower target price of S$3.08.
- - Read this at SGinvestors.io -
AEM's 1H23E won’t be as great as 1H22
- AEM (SGX:AWX) enjoyed a robust 1H22 due to an exceptional surge in orders by its key customer which will likely not be replicated in 1H23E. 1H22 formed about 64% of our NPAT FY22E estimate.
- - Read this at SGinvestors.io -
Margins might be impacted
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-01-08
Read also Maybank's most recent report:
2024-04-03 AEM - Bright Sparks Appearing; Worst Likely Over. Upgrade To BUY.
Previous report by Maybank:
2024-03-01 AEM - Disappointing Guidance.
Price targets by 2 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
