- 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.
