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

• 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

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Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-11-13 AEM - A Few Quarters Too Early.

Previous report by Maybank:
2025-08-15 AEM - Slow Turnaround; Maintain SELL.

Price targets by other brokers at AEM Target Prices.

Listing of research reports at AEM Analyst Reports.

Relevant links:
AEM Share Price History,
AEM Announcements,
AEM Dividend Payout Dates & Corporate Actions,
AEM News