- AEM delivered 1Q25 net profit of S$3.3mil (+42.9% y-o-y against a S$2.1mil restructuring charge in 1Q24, -71.4% q-o-q) on revenue of S$86mil (-8.7% y-o-y, -35.1% q-o-q).
- 1Q25 revenue declined sequentially, mainly due to the test cell solutions segment (-47% q-o-q, comprising S$ 51.2mil/60% of group revenue) with the pull-in of orders by the key customer into 4Q24, resulting in a notable 85% q-o-q decrease in test and automation equipment revenue to S$11.4mil. This is partially offset by contributions from the high volumes of AMPS-BI manufactured for the new fabless AI customer and growth in associated test consumables, which contributed a 173% q-o-q increase in consumables sales to S$30.8mil.
1Q25 revenue was broadly in line with expectations, but earnings came in below our and consensus forecasts.
- - Read this at SGinvestors.io -
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- Net profit margin fell 4.9ppt q-o-q to 3.9%, likely reflecting weaker operating leverage. This resulted in net profit of S$3.3mil, missing expectations, accounting for 24% of our revised forecast and 13% of consensus FY25 estimates.
- Of note, financial liabilities decreased 23.1% q-o-q due to debt repayment, resulting in D/E of 0.1x.
Reaffirmed 1H25 guidance reflects immediate-term visibility while stronger 2H25 still expected barring significant tariff impact.
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