AEM - UOB Kay Hian 2024-01-17: Downgrade To HOLD On Inventory Write-Downs & Limited Near-Term Catalysts

AEM - Downgrade To HOLD On Inventory Write-Downs & Limited Near-Term Catalysts

AEM (SGX:AWX) | SGinvestors.ioAEM (SGX:AWX)
  • AEM (SGX:AWX) uncovered a shortfall in its inventories due to human error in transactions in its ERP system during the migration of production to its new Penang facility.
  • The shortfall is expected to have a negative earnings impact of around S$22m in 4Q23 due to understated cost of sales. As a result, we trim 2023 earnings forecast for AEM from S$14m to a S$6m loss. We also trim 2024 earnings forecast for AEM by 17%.

AEM uncovered shortfall in inventories during year-end stock-taking exercise.

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  • As a result of the initial findings, AEM is reviewing its inventory and stock monitoring as well as tracking processes and systems.

Expect negative earnings impact in 4Q23.

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

John Cheong UOB Kay Hian Research | 2024-01-17

Read also UOB's most recent report:
2024-05-09 AEM - 1Q24 Earnings Below Estimate; Outlook Worsens; Downgrade To SELL.

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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