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

• 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 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