- 1H25 revenue guidance of S$155m-170m is disappointing, making up only 37% of our 2025 revenue estimate. AEM expects a stronger 2H25 from the ramp-up of key customers and recovery in the contract manufacturing business. Maintain SELL. Current valuation remains rich at 19x 2025 P/E.
2024 earnings beat expectations due to better-than-expected net margin.
- - Read this at SGinvestors.io -
- Also, 2H24 revenue of S$207m was up 19% vs 1H24 due to a similar reason.
1H25 revenue guidance of S$155m-170m is disappointing.
- - Read this at SGinvestors.io -
- AEM highlighted that this reflects lower revenue due to the pull-in to 2H24 by AEM’s key customer, balanced by the rapid revenue growth from AEM’s new customer accounts deploying their high density burn-in solutions and active thermal solutions for system level tests for their advanced computing chips.
Expect a stronger 2H25 and continued investment in growth areas.
- 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/ 2025-03-03
Previous report by UOB:
2024-11-14 AEM - 3Q24 Earnings Below Estimate & Outlook Remains Uncertain; Maintain 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 Dividend Payout Dates & Corporate Actions,
AEM News
