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

Published:
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.

  • - Read this at SGinvestors.io -
  • - Read this at SGinvestors.io -
  • 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.

  • Read more at SGinvestors.io.




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 @ https://www.utrade.com.sg/.




John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-01-17



Previous report by UOB:
2023-11-14 AEM - 9M23 Revenue In Line With Forecast; Recovery Expected In Late 2024.

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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