- We were too optimistic of a much stronger 2H24E based on potential order recovery from AEM's key customer as well as ramp up of recently unveiled new orders.
Still too early
- However, AEM's management updated that the new orders will only start mass production at end-FY24 and the main surge will only come in FY25E. It also only expects an uptick in growth in 2025.
- - Read this at SGinvestors.io -
Main recovery only likely in FY25E
- AEM (SGX:AWX)'s 1Q24 revenue dropped 38.3% y-o-y to S$94.2m while NPAT fell 85% y-o-y to S$2.3m, below consensus estimates but in line with ours’. This is mainly due to drops in equipment sales of -69% y-o-y to S$9.7m and services of -38% y-o-y to S$94.2m, as a key customer already made large purchases in FY21-23.
- - Read this at SGinvestors.io -
Expect more orders from new customers
- Read more at SGinvestors.io.
