- We now think it’s too early to position for AEM (SGX:AWX) and slash our FY24/25E PATMI estimates by 67.2% and 63.7% and cut our AEM target price to S$1.22 from S$2.02. We also downgrade our rating to SELL from HOLD.
1H24 NPAT way below estimates
- - Read this at SGinvestors.io -
- Management of AEM guided 2H revenue to be around S$160-180m but with higher margins likely due to higher gross margins on new products for its new customers. However, we expect the growth from new customers to take multiple years to play out before it matches that of its core existing customer which is not faring as well as in the past.
Main ramp up only in FY25E
- - Read this at SGinvestors.io -
- Management expects new business growth in 4Q24E and a ramp up to S$100m+ for FY25E for its new customers.
Focusing on technology advancement
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-14
Previous report by Maybank:
2024-05-09 AEM - 2H24 Hopes Diminish; Downgrade To HOLD.
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
