AEM - DBS Research 2026-02-27: Placing More Chips On Our Non-consensus BUY Call

• We continue to favour AEM for its AI leveraged growth profile, underpinned by sustained tailwinds and ongoing diversification.

FY25 net profit came in at S$17.1mil (+48% y-o-y) on revenue of S$399.3mil (+5% y-o-y), above expectations.

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• By segment, the test cell solutions business, which made up 63% of FY25 revenue, recorded 9% y-o-y growth on the back of successful production deployment and customer acceptance of AEM’s test solutions.
• The contract manufacturing segment, contributing 35% of revenue, was flat despite softer end demand linked to global trade uncertainties. Net profit margin expanded 1.2 ppts to 4.3% given improved operating leverage as top line grew.

Resumption of dividends.

• - Read this at SGinvestors.io -
• The resumption of AEM's dividends at 1.3 Singapore cents for FY2025 (vs none in FY24) signals confidence in AEM’s turnaround.

Well positioned to benefit from multi year AI demand.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2026-03-20 AEM - Valuation Uplift As AI Tailwinds Persists And New Customer Traction Builds.

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