AEM - DBS Research 2024-03-01: Uncertainties Persist Into 2024

AEM - Uncertainties Persist Into 2024

Published:
AEM (SGX:AWX) | SGinvestors.ioAEM (SGX:AWX)
  • AEM (SGX:AWX)'s FY23 revenue of $481.3m (-44.7% y-o-y) broadly in line with expectations. The revenue decline can be attributed to
    1. the chip glut as the semiconductor industry slows down,
    2. - Read this at SGinvestors.io -
    3. a pull-in of orders for FY22 that were originally intended for FY23.

Net loss of $1.2m (-100.9% y-o-y) better than expected.

  • Gross margins decreased by 4.5ppt, from 31.4% in FY22 to 26.9% in FY23, mainly due to changes in the product mix. Services, which comprise lower margin contract manufacturing, accounted for 60% of FY23 revenue, up from 28% in FY22.
  • Other factors affecting the bottom line were an inventory adjustment of $21.1m and an arbitration settlement of $26.7m.
  • Despite the net loss, we note that AEM fared better than our estimate of -$5-6m due to lower-than-expected SG&A expenses (-31% y-o-y).

Bonus issue

  • - Read this at SGinvestors.io -

Our Thoughts

Uncertainties surrounding timing of new product ramps and pace of industry recovery cast a shadow on FY24.

  • Read more at SGinvestors.io.




Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




Amanda TAN DBS Group Research | Lee Keng LING DBS Research | https://www.dbs.com/insightsdirect/ 2024-03-01



Read also DBS's most recent report:
2024-05-10 AEM - Two Sides To A Chip ~ Key Customer Weakness, New Customer Growth.

Price targets by 3 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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