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.
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