AEM - UOB Kay Hian 2024-11-14: 3Q24 Earnings Below Estimate & Outlook Remains Uncertain; Maintain SELL

• AEM reported a 3Q24 loss of S$0.9m and 9M24 loss of S$0.1m. Earnings missed our 2024 estimate of S$10m.
• AEM has raised 2H24 revenue guidance to S$190m-210m, up from S$160m-180m as its key customer brings forward orders from 2025. Its outlook remains mixed with the company focusing on implementing four mid-term strategies.
• - Read this at SGinvestors.io -

3Q24 earnings missed expectation due to weak margin and low revenue base.

• AEM (SGX:AWX) reported 3Q24 loss of S$0.9m (vs S$1.5m loss in 3Q23) and 9M24 loss of S$0.1m. Earnings appear to be a miss vs our 2024 estimate of S$10m. 3Q24 revenue of S$74m (-7% y-o-y) was largely in line, with 9M24 revenue of S$248m meeting 69% of our full-year estimate.
• - Read this at SGinvestors.io -
• Despite a 6.5% q-o-q reduction in revenue compared with 2Q24, AEM managed to achieve a 3.5% q-o-q growth in core PBT, due to a favourable product mix and its operational agility to align the internal cost structure with external demand.

2H24 revenue guidance raised to S$190m-210m

• Read more at SGinvestors.io.

John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-14 SGinvestors.io

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