AEM Holdings - Maybank Research 2023-01-08: Facing Headwinds; Downgrade To SELL

AEM Holdings - Facing Headwinds; Downgrade To SELL

Published:
AEM HOLDINGS LTD (SGX:AWX) | SGinvestors.ioAEM HOLDINGS LTD (SGX:AWX) UMS HOLDINGS LIMITED (SGX:558)
  • 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://www.ketrade.com.sg/.




Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-01-08



Read also Maybank's most recent report:
2024-01-17 AEM - Inventory Shortfall; Downgrade To HOLD.

Previous report by Maybank:
2023-11-13 AEM - Things Have Bottomed; Better FY24e.

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





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