AEM (SGX:AWX)'s FY25 PATMI of S$17m was 100% higher than we had expected.
Most importantly, management is now much more bullish and expects FY26 revenue to increase to S$460-510m, mainly due to the ramp up from its AI/HPC customer and expects this customer to become its largest client. We believe the ramp-up is finally here and expect substantial margin expansion going forward.
AI/HPC customer to become its largest client.
- Read this at SGinvestors.io -
Equipment evaluation with a leading memory customer is also on track, with production units slated for delivery in late FY26, followed by a ramp-up in production in FY27E.
FY26 revenue guidance of S$460-510m.
- Read this at SGinvestors.io -
We believe the surge in test cells solution will drive up overall margins and operating leverage will also help expand net margins. We expect significant margin expansion in FY26-28E.
Working to secure customer #3 and #4.
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/.
