- AEM reported 3Q24 revenue of S$74.2mil (-6.5% q-o-q, -33.6% y-o-y), accounting for 21% of our full-year estimates, in line, as we are expecting a stronger fourth quarter.
- Test cell solutions (TCS), which makes up 46.7% of 3Q24 group revenue, declined 16.6% q-o-q owing to lower engineering services for the key customer, while contract manufacturing, which accounts for 50.8% of group revenue, grew 5.3% q-o-q on improving inventory conditions within the industrial market.
3Q24 revenue in line with our estimates, while earnings took a hit due to exceptionals and lower operating leverage.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Regarding the balance sheet, cash declined by 40.4% q-o-q to S$47mil to support new product ramp-up, likely for new customers.
4Q24 set for a strong finish to the year.
2H24 revenue guidance revised upward by 18% due to a pull in of revenue under non-cancellable POs by key customer.
- 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 Group Research | https://www.dbs.com/insightsdirect/ 2024-11-14
Previous report by DBS:
2024-11-07 AEM - Non-consensus Upgrade On Turnaround.
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
