AEM Holdings - DBS Research 2019-11-29: ”Testing” New Highs

AEM HOLDINGS LTD (SGX:AWX) | SGinvestors.io AEM HOLDINGS LTD (SGX:AWX)

AEM Holdings - ”Testing” New Highs

  • Initiating coverage with a BUY and Target Price of S$2.38, representing a potential upside of 39%.
  • Key customer is increasing capex and production capacity.
  • New technology structurally increases test times, leading to higher demand for test handlers.
  • Diversification of revenue stream through new projects and customers.



Leveraging on increasing capex for key customer.



New technology to drive longer test times, leading to higher demand for test handlers.

  • As technology nodes shrink, longer test times are required to perform more complex tests. In addition, systems and devices used in safety-critical markets such as automotive (driverless vehicles), industrial, and medical equipment, will require more stringent system level tests. These would lead to higher demand for test handlers.


Diversification of revenue through new projects and customers.

  • AEM is working with its key customer to develop hybrid extensions for the customer’s existing handlers as well as new technology used in quantum computing testing. Other initiatives include supplying cable testing solutions for Huawei’s 5G rollout.

See attached 22-page initation coverage report on AEM (SGX:AWX) for complete analysis.






Lee Keng LING DBS Group Research | Singapore Research Team DBS Research | https://www.dbsvickers.com/ 2019-11-29
SGX Stock Analyst Report BUY INITIATE BUY 2.38 SAME 2.38



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