AEM - Maybank Research 2023-11-13: Things Have Bottomed; Better FY24e

AEM - Things Have Bottomed; Better FY24e

AEM (SGX:AWX) | SGinvestors.ioAEM (SGX:AWX)
  • AEM (SGX:AWX) reported a weak 3Q23, mainly due to the US$20m settlement provision, but in line with our estimate. Profit before tax for 9M23 would be S$42.6m, excluding exceptional items.
  • However, management has guided that it now sees a protracted recovery of tester utilization rates pushing main capex spend into late 2024. As a result, we reduce our FY24/25 PATMI forecasts for AEM by 24% and 10.6%, respectively.
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Slight delay - ramp up in 2H24 instead of 1H24

  • AEM said it has not changed its FY23 revenue guidance but now expects ramp up from its new customers and existing customers in late 2024 instead of 1H24 as protracted recovery in tester utilization rates is now expected. This stems from improved visibility of customer product release schedules.
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  • Management has driven improved efficiencies throughout the business by managing operational costs, reducing S&A by 25% y-o-y. Management said it will remain agile and right-size operations to reflect recovery in client demand.

No loss of key customer market share

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Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Jarick Seet Maybank Research | 2023-11-13

Read also Maybank's most recent report:
2024-04-03 AEM - Bright Sparks Appearing; Worst Likely Over. Upgrade To BUY.

Previous report by Maybank:
2024-03-01 AEM - Disappointing Guidance.

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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