- AEM's FY24 earnings came in at S$11.6mil on revenue of S$380.4mil (-21% y-o-y), ahead of our expectations.
- FY24 revenues were back-loaded, with 2H24 revenue of S$206.8mil (+0.4% y-o-y, 19.2% h-o-h) coming in at the higher end of the guidance of S$190-210mil.
Key customer Intel pulled in orders under the non-cancellable long dated PO programme.
- - Read this at SGinvestors.io -
- FY24 gross margins contracted 1.2ppt y-o-y to 25.7% on the back of lower revenue, but AEM was able to return to profitability with net income of S$11.6mil in FY24 in the absence of arbitration settlement expenses of S$26.7mil recorded in the prior year.
Guidance signals a subdued 1H25, largely due to timing factors.
- - Read this at SGinvestors.io -
- Reasons cited for the decline included a significant revenue pull of ~S$50mil from FY25 to 2H24, and to a lesser extent, some customer pushouts in system shipments into 2H25.
A stronger 2H25 is expected, driven by a recovery in contract manufacturing and potential product ramp-ups.
- 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/ 2025-03-03
Previous report by DBS:
2024-11-14 AEM - Reaffirming Our Non-consensus BUY.
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
