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AEM Holdings - CGS-CIMB Research 2020-05-19: Progress In Diversification

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

AEM Holdings - Progress In Diversification

  • UTAC and AEM have announced a partnership to develop test solutions for complementary metal-oxide-semiconductor (CMOS) image sensors.
  • We view the partnership as being incrementally positive for AEM’s efforts to diversify its revenue stream.
  • Reiterate ADD and Target Price of S$3.58.



Announces partnership with UTAC

  • According to eeNews Europe (18 May 2020), Singapore-based semiconductor assembly and test services provider UTAC Holdings Ltd has teamed up with AEM Holdings (SGX:AWX) to develop next-generation, cost-effective test system solutions for CMOS image sensor products.
  • According to the partnership, CMOS image sensor sales are estimated to grow significantly, driven by demand from applications in the areas of security, automotive safety, autonomous vehicles and industrial.
  • Through this collaboration, the partnership will create application-specific test solutions that will provide semiconductor companies with cost-effective solutions that are scalable and adaptable for future product lines.


Making incremental progress in diversification

  • As at end-1Q20, non-Intel revenue was 2% of AEM’s total turnover.
  • We view this partnership as incrementally positive with AEM making further progress in diversifying its revenue stream.


Reiterate ADD






William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2020-05-19
SGX Stock Analyst Report ADD MAINTAIN ADD 3.580 SAME 3.580



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