AEM - UOB Kay Hian 2024-08-15: 1H24 Earnings & Guidance Way Below Estimates; Reduce Target Price By 38%

• 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 an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2026-02-27 AEM - Positive Outlook For Key Customers; Upgrade To BUY.

Previous report by UOB:
2025-05-15 AEM - 1Q25 Revenue In Line But 2Q25 Outlook Remains Weak.

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 Dividend Payout Dates & Corporate Actions,
AEM News