- We believe that the period of supernormal earnings where AEM reported >S$100m of earnings in 2020 and 2021 is behind us, and this is unlikely to be repeated in the near to medium term.
- Although new customers’ orders are expected to be in the triple-digit millions in 2025 and will boost AEM’s revenue notably, we believe the net margin contribution will not be very appealing given the lack of operating leverage as seen in the major ramp-up and front-loading of orders from its single largest customer in 2020 and 2021.
1H24 earnings missed expectation due to weaker-than-expected net margin.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
1H24 revenue fell 37% y-o-y due to declines in two major segments.
- 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/ 2024-08-15
Previous report by UOB:
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
