AEM - UOB Kay Hian 2025-03-03: 2024 Earnings Above Estimates; Outlook & Valuation Remain Unexciting

AEM - 2024 Earnings Above Estimates; Outlook & Valuation Remain Unexciting

Published:
AEM (SGX:AWX) | SGinvestors.io
  • 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 an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ 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






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