AEM - Maybank Research 2025-11-13: A Few Quarters Too Early

• AEM (SGX:AWX)’s 9M25 NPAT of S$4m was lower than ours and consensus estimates by 50-70%.
• AEM expects 2H25 revenue to reach the upper end of the S$170-190m guidance and remains bullish for FY26, with its major AI/High-Performance Computing (HPC) customer expected to grow significantly. However, valuations remain rich for AEM's share price trading at 24.2x FY26E P/E (vs sector average of 18x and 5-year mean of 15x) and we believe the main profitability surge is unlikely until 2H26E.

Expect AI/HPC revenue to double.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

2H25 revenue guidance of S$170-190m.

• AEM expects 2H25 revenue to reach the upper end of its S$170–190m guidance, similar to 1H25, driven by robust demand from its major AI/HPC customer, which is set to ramp up production in late 2025 for its next-generation AI accelerator.
• A purchase order for an evaluation final-test handler from its memory customer also signals potential revenue recognition in late FY26, with volume production in FY27.

Maintain SELL, target price higher at 20x 26E P/E.

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2026-02-26 AEM - Ramp-up Is Here; Upgrade To 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