AEM - Maybank Research 2023-05-15: Dark Clouds Still Present; Maintain SELL

AEM - Dark Clouds Still Present; Maintain SELL

Published:
AEM (SGX:AWX) | SGinvestors.ioAEM (SGX:AWX)
  • AEM (SGX:AWX)'s 1Q23 revenue and NPAT sank 42% and 62% y-o-y to S$152.7m and S$15.6m, respectively, 16% below our estimates.
  • Management retained its S$500m FY23 revenue guidance and will only have more clarity after July or August 2023. As a result, we cut our respective FY23 and FY24 PATMI forecasts by 8.2% and 8.3% as AEM’s margins will likely face pressure from lower operating leverage and potential margin squeeze by its main customer.

PBT and net margin pressures prevalent

  • - Read this at SGinvestors.io -
  • Management has taken proactive steps to lower operating costs and increase operational efficiency.

New customer engagement on track

  • - Read this at SGinvestors.io -
  • High inventory levels show signs of a potential turnaround but timing will be the key.

Short-term outlook still bleak

  • 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.maybanktrade.com.sg/.




Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-05-15



Read also Maybank's most recent report:
2024-05-09 AEM - 2H24 Hopes Diminish; Downgrade To HOLD.

Previous report by Maybank:
2024-04-03 AEM - Bright Sparks Appearing; Worst Likely Over. Upgrade To BUY.

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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